PROPERTY AND EQUIPMENT

12 Months Ended

Jan. 31, 2018

Property Plant And Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE C — PROPERTY AND EQUIPMENT

Property and equipment consist of:

		January 31,
		2018			2017
		(In thousands)
Machinery and equipment	5 years		$	1,529		$	1,376
Leasehold improvements	3 – 13 years			77,091			82,658
Furniture and fixtures	3 – 10 years			88,733			79,292
Computer equipment and software	2 – 5 years			28,301			15,907
				195,654			179,233
Less: accumulated depreciation				97,797			76,662
			$	97,857		$	102,571

The Company wrote off fixed assets of  $3.6 million and $3.2 million, net of accumulated depreciation, for the years ended January 31, 2018 and 2017. Depreciation expense was $32.8 million, $29.6 million and $23.0 million for the years ended January 31, 2018, 2017 and 2016, respectively. For the year ended January 31, 2018, the Company recorded (i) a $6.5 million impairment charge related to leasehold improvements and furniture and fixtures of certain Wilsons, G.H. Bass and Vilebrequin stores as a result of the performance of these stores and (ii) a $738,000 impairment charge with respect to furniture and fixtures located in certain customers’ stores. For the year ended January 31, 2017, the Company recorded a $10.5 million impairment charge on leasehold improvements and furniture and fixtures of certain of its Wilsons and G.H. Bass stores as a result of the performance of these stores.

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In the evaluation process, the Company first compares the carrying value of the asset to the estimated future cash flows (undiscounted and without interest charges plus proceeds expected from disposition, if any). If the estimated undiscounted cash flows are less than the carrying value of the asset, the Company needs to determine the fair value of the assets. The Company compares the carrying value of the asset to the asset’s estimated fair value. If the fair value is less than the carrying value, the Company recognizes an impairment charge. The carrying amount of the asset is reduced to the estimated fair value based on a discounted cash flow valuation. Assets to be disposed of are reported at the lower of the carrying amount of the asset or fair value less costs to sell. The Company reviews retail store assets for potential impairment based on historical cash flows, lease termination provisions and forecasted future retail store operating results. If the Company recognizes an impairment charge for a depreciable long-lived asset, the adjusted carrying amount of the asset becomes its new cost basis and will be depreciated (amortized) over the remaining useful life of that asset.