PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, plant and equipment, net, consisted of the following:



	December 31,
	2019			2018
	(in thousands)
Land, buildings and improvements	$	21,971		$	74,062
Machinery and equipment	72,250			159,563
Leasehold improvements	106,954			107,089
Furniture and fixtures	101,738			108,196
Software	54,211			52,970
Construction in progress	855			2,896
Total property, plant and equipment	357,979			504,776
Less: accumulated depreciation	(261,542		)	(340,160		)
Less: accumulated impairment	(9,521		)	(9,521		)
Net property, plant and equipment⁽¹⁾	$	86,916		$	155,095

(1) In the first quarter of 2019, the Company transferred the Nutra manufacturing business net assets to the Manufacturing JV and transferred the China net assets to the HK JV and China JV.

The Company recognized depreciation expense on property, plant and equipment of $29.6 million, $40.1 million, and $49.4 million for the years ended December 31, 2019, 2018 and 2017, respectively, which is included in manufacturing overhead expense as part of cost of sales and SG&A expense on the Consolidated Statements of Operations.

Impairments and Other Store Closing Costs

No impairment of property, plant and equipment was recognized during the year ended December 31, 2019.

During the third quarter of 2018, the Company performed a detailed review of its store portfolio and identified stores in the U.S. and Canada that will be closed within the next three years at the end of their lease terms. This review also identified other stores in which the Company is considering alternatives such as seeking lower rent or a shorter term. In connection with the review of the store portfolio, the Company recorded $14.6 million of impairment charges within the U.S. and Canada segment, of which $9.5 million related to its property, plant and equipment for certain underperforming stores and $5.1 million related to other store closing costs, presented as long-lived asset impairments in the accompanying Consolidated Statement of Operations.

During the year ended December 31, 2017, the Company recorded $18.6 million of impairment charges within the U.S. and Canada segment primarily related to certain of the Company's underperforming stores and the impact of Hurricane Maria on the Company's stores located in Puerto Rico. Refer to Note 6, "Goodwill and Intangible Assets" for fixed asset impairments related to Lucky Vitamin in 2017.

The impairment tests were performed at the individual store level as this is the lowest level which identifiable cash flows are largely independent of other groups of assets and liabilities. Underperforming stores were generally comprised of stores with historical and expected future losses or stores that management intends on closing in the near term. If the undiscounted estimated future cash flows were less than the carrying value of the individual store, an impairment charge was calculated by subtracting the estimated fair value of property and equipment from its carrying value. Fair value was estimated using a discounted cash flow method (income approach) utilizing the undiscounted cash flows estimated in the first step of the test.