10. Property and Equipment

Property and equipment, net, consist of the following:

	April 28,			July 30,
	2012			2011
	(millions)
Property and Equipment:
Land	$	16.9		$	16.5
Buildings and improvements		47.5			78.0
Leasehold improvements		350.8			332.0
Furniture, fixtures and equipment		304.7			271.3
Information technology		158.5			148.8
Construction in progress		36.6			36.6
		915.0			883.2
Less accumulated depreciation		(429.4	)		(394.2	)
Property and equipment, net	$	485.6		$	489.0

Buildings

Sale of New York Facility

In April 2012, the Company entered into an agreement to sell its 900,000 square-foot building and 16 acres of adjacent land (the “New York Facility”) in Suffern, NY, which contains Ascena and Dressbarn’s administrative offices and the former warehouse space of Dressbarn, for approximately $40.0 million. Simultaneously, the Company entered into a two-year leaseback for a minor portion of the building of approximately 124,000 square-feet of office space, which is cancelable at any time subject to a 10-day notice period. The transaction is expected to close on or about May 31, 2012, and will result in a gain in the range of approximately $5 to $10 million. The transaction is subject to normal and customary closing conditions.

As a result of this pending transaction, the Company reclassified the net book value of the New York Facility of $29.9 million as an asset held-for-sale in the accompanying consolidated balance sheet at April 28, 2012.

Purchase of New Jersey Office Building

In April 2012, the Company purchased a 129,000 square-foot building in Mahwah, NJ, for $14.6 million. Upon completion of the Company’s planned renovations and expansion, which are anticipated to be completed by the summer of 2013, the building will become the new administrative offices for Ascena and the Dressbarn brand.

As an incentive for the Company to relocate its offices to New Jersey, the Company was approved, under the Grow New Jersey Assistance Program, for up to an annual $3.2 million tax credit for ten years, aggregating to an amount no greater than $32.4 million. The tax credits are subject to certain requirements including: (i) a required capital expenditure spending threshold for qualified improvements to the facility, (ii) a continued maintenance of certain employee levels for ten years in the new facility and in the State of New Jersey, and (iii) certain average employee compensation thresholds, as well as other stated requirements. In the event the Company fails to comply with the program rules, the credit will be suspended starting in the year when the Company fails to comply and until the Company is deemed again to be in compliance by the State of New Jersey, at which time it will be reinstated. The credits obtained from the program will be used by the Company to reduce its New Jersey corporate income tax liability and, to the extent not used, carried forward or sold to a third party for an amount not less than 75% of face value.