PROPERTY AND EQUIPMENT

12 Months Ended

Jan. 31, 2020

Property Plant And Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE D — PROPERTY AND EQUIPMENT

Property and equipment consist of:

		January 31,
	Estimated life	2020		2019
		(In thousands)
Machinery and equipment	5 years	$	1,867	$	2,270
Leasehold improvements	3-13 years		75,808		78,403
Furniture and fixtures	3-10 years		109,284		97,133
Computer equipment and software	2-5 years		41,040		32,537
			227,999		210,343
Less: accumulated depreciation			(151,976)		(123,936)
		$	76,023	$	86,407

The Company wrote off fixed assets of $5.4 million and $2.0 million, net of accumulated depreciation, for the years ended January 31, 2020 and 2019. Depreciation expense was $33.8 million, $33.9 million and $32.8 million for the years ended January 31, 2020, 2019 and 2018, respectively. For the year ended January 31, 2020, the Company recorded a $11.5 million impairment charge related to leasehold improvements and furniture and fixtures of certain Wilsons Leather, G.H. Bass and DKNY stores as a result of the performance of these stores. For the year ended January 31, 2019, the Company recorded a $2.8 million impairment charge related to leasehold improvements and furniture and fixtures of certain Wilsons Leather, G.H. Bass and Vilebrequin stores as a result of the performance of these stores. For the year ended January 31, 2018, the Company recorded a $10.5 million impairment charge on leasehold improvements and furniture and fixtures of certain of its Wilsons Leather and G.H. Bass stores as a result of the performance of these stores and a $0.7 million impairment charge with respect to furniture and fixtures located in certain customers’ stores.

The Company evaluates long-lived assets, which consist primarily of property and equipment and operating lease 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 or asset group to its 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 or asset group 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.