Property and Equipment

12 Months Ended

Feb. 01, 2020

Property, Plant and Equipment [Abstract]

Property and equipment is summarized as follows (in thousands):



	Feb 1, 2020		Feb 2, 2019
Land, buildings and improvements	$	51,416	$	52,039
Leasehold improvements	388,733		387,802
Furniture, fixtures and equipment	428,121		410,518
Construction in progress	9,510		18,844
Assets under finance leases	21,599		19,069
	899,379		888,272
Less accumulated depreciation and amortization	611,267		572,714
	$	288,112	$	315,558

During fiscal 2020 and 2019, the Company entered into finance leases related primarily to computer hardware and software. The accumulated depreciation and amortization related to assets under finance leases was approximately $5.6 million and $3.1 million as of February 1, 2020 and February 2, 2019, respectively, and was included in depreciation expense when recognized. See Note 8 for more information regarding the related finance lease obligations.

Construction in progress represents the costs associated with the construction in progress of leasehold improvements to be used in the Company’s operations, primarily for new and remodeled stores in retail operations.

Impairment

The Company recorded asset impairment charges related to property and equipment of $7.5 million, $6.9 million and $8.5 million for fiscal 2020, fiscal 2019 and fiscal 2018, respectively. The asset impairment charges related primarily to the impairment of certain retail locations in Asia and, to a lesser extent, Europe and North America resulting from under-performance and expected store closures during each of the respective periods.

Impairments to property and equipment are summarized as follows (in thousands):



	Feb 1, 2020		Feb 2, 2019
Aggregate carrying value of property and equipment impaired	$	8,456	$	7,111
Less property and equipment impairment charges	7,546		6,939
Aggregate remaining fair value of property and equipment impaired	$	910	$	172

The Company’s impairment evaluations included testing of 314 retail locations and 163 retail locations during fiscal 2020 and fiscal 2019, respectively, which were deemed to have impairment indicators. The Company concluded that 101 retail locations and 35 retail locations, respectively, were determined to be impaired, as the carrying amounts of the fixed assets exceeded their estimated fair values (determined based on discounted cash flows) at each of the respective dates. Refer to Note 1 for a description of other assumptions that management considers in estimating the future discounted cash flows. If actual results are not consistent with the assumptions and judgments used in estimating future cash flows and asset fair values, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations.