PROPERTY AND EQUIPMENT

12 Months Ended

Jan. 28, 2023

PROPERTY AND EQUIPMENT.

PROPERTY AND EQUIPMENT

9.   PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

($thousands)	January 28, 2023		January 29, 2022
Land and buildings	$	37,394	$	48,355
Leasehold improvements		204,378		197,218
Technology equipment		50,628		49,550
Machinery and equipment		106,197		98,308
Furniture and fixtures		130,761		127,125
Construction in progress		20,504		3,066
Property and equipment		549,862		523,622
Allowances for depreciation		(388,979)		(373,384)
Property and equipment, net	$	160,883	$	150,238

Useful lives of property and equipment are as follows:

	Years
Buildings	5 - 30
Leasehold improvements	5 - 20
Technology equipment	2 - 10
Machinery and equipment	4 - 20
Furniture and fixtures	3 - 10

After allowing for an appropriate start-up period, property and equipment at stores and any lease right-of-use assets indicated as impaired are written down to fair value as calculated using a discounted cash flow method.  The Company recorded charges for impairment of $1.8 million, $4.1 million and $56.3 million in 2022, 2021 and 2020, respectively, primarily for operating lease right-of-use assets, leasehold improvements and furniture and fixtures in the Company’s retail stores and capitalized software.  All of the charges in 2022 and 2021 are presented in selling and administrative expenses. Of the $56.3 million of impairment charges in 2020, $55.3 million is reflected in restructuring and other special charges and $1.0 million is reflected in selling and administrative expenses. Fair value was based on estimated future cash flows to be generated by retail stores, discounted at a market rate of interest. Refer to Note 4, Note 12 and Note 13 to the consolidated financial statements for further discussion of these impairment charges.

Property and Equipment, Held for Sale

During 2021, the Company began actively marketing for sale its nine-acre corporate headquarters campus (the “Campus”) located in Clayton, Missouri.  In January 2023, the Company entered into a letter of intent to sell the Campus.  Subsequent to fiscal year-end, in February 2023, the Company entered into an agreement to sell the Campus, subject to certain closing conditions.  The Company expects the Campus to qualify as a completed sale within the next year.  Accordingly, the Campus, primarily consisting of land and buildings, has been classified as property and equipment, held for sale within the Eliminations and Other category on the consolidated balance sheet as of January 28, 2023.  The Company evaluated the Campus asset group for impairment and determined that no indicators were present as of January 28, 2023.  As of January 29, 2022, the Company was in negotiations to sell the campus and expected only a portion of the campus to qualify as a completed sale within twelve months.  That portion of the campus, which was included in the Eliminations and Other category, was classified within property and equipment, held for sale on the consolidated balance sheet as of January 29, 2022.