Property and Equipment

12 Months Ended

Jan. 30, 2016

Property, Plant and Equipment [Abstract]

Property and equipment is summarized as follows (in thousands):



	Jan 30, 2016		Jan 31, 2015
Land and land improvements	$	2,750	$	2,866
Building and building improvements	29,501		3,471
Leasehold improvements	354,524		386,374
Furniture, fixtures and equipment	343,537		356,960
Construction in progress	7,307		11,417
Properties under capital lease	18,421		19,190
	756,040		780,278
Less accumulated depreciation and amortization	500,696		520,754
	$	255,344	$	259,524

During the fourth quarter of fiscal 2016, the Company purchased, for approximately $28.8 million, the facility that houses its U.S. distribution center.

Construction in progress represents the costs associated with the construction in progress of leasehold improvements to be used in the Company’s operations, primarily for new and remodeled stores in retail operations. No interest costs were capitalized related to construction in progress during fiscal 2016, fiscal 2015 and fiscal 2014.

The accumulated depreciation and amortization related to the property under the capital lease was approximately $6.2 million and $5.8 million as of January 30, 2016 and January 31, 2015, respectively, and was included in depreciation expense when recognized. See Notes 8 and 14 for information regarding the associated capital lease obligations.

Impairment

The Company recorded impairment charges of $2.3 million, $24.8 million and $8.8 million for fiscal 2016, fiscal 2015 and fiscal 2014, respectively. The impairment charges related primarily to the impairment of certain retail locations in North America and Europe resulting from under-performance and expected store closures during each of the respective periods. These impairment charges, which exclude impairment charges incurred during fiscal 2014 related to restructuring activities, were included in SG&A expenses in the Company’s consolidated statements of income for each of the respective periods. Refer to Note 9 for more information regarding impairment charges related to restructuring activities.

Impairments to long-lived assets are summarized as follows (in thousands):



	Jan 30, 2016		Jan 31, 2015
Aggregate carrying value of all long-lived assets impaired	$	2,469	$	26,106
Less impairment charges	2,287		24,766
Aggregate remaining fair value of all long-lived assets impaired	$	182	$	1,340

The Company’s impairment evaluations included testing of 122 retail locations and 179 retail locations during fiscal 2016 and fiscal 2015, respectively, which were deemed to have impairment indicators. The Company concluded that 22 retail locations and 139 retail locations, respectively, were determined to be impaired, as the carrying amounts of the assets exceeded their estimated fair values (determined based on discounted cash flows) at each of the respective dates. Refer to Note 1 for a description of other assumptions that management considers in estimating the future discounted cash flows. If actual results are not consistent with the assumptions and judgments used in estimating future cash flows and asset fair values, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations.