Property and Equipment

12 Months Ended

Jan. 28, 2023

Property, Plant and Equipment [Abstract]

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


	Jan 28, 2023		Jan 29, 2022
Land, buildings and improvements	$	51,017	$	51,530
Leasehold improvements	353,106		354,040
Furniture, fixtures and equipment	459,113		433,158
Construction in progress	14,545		18,749
Assets under finance leases	37,849		36,694
	915,630		894,171
Less accumulated depreciation and amortization	675,275		665,406
	$	240,355	$	228,765

During fiscal 2023 and 2022, the Company entered into finance and operating leases related primarily to computer hardware and software. The accumulated depreciation and amortization related to assets under finance leases was approximately $18.8 million and $14.8 million as of January 28, 2023 and January 29, 2022, 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 $9.5 million, $2.4 million and $35.0 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively. The asset impairment charges for fiscal 2023, fiscal 2022 and fiscal 2021 related primarily to certain retail locations in Europe, North America and Asia resulting from underperformance, expected store closures and other global economic conditions.

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


	Jan 28, 2023		Jan 29, 2022
Aggregate carrying value of property and equipment impaired	$	44,284	$	24,422
Less property and equipment impairment charges	9,474		2,414
Aggregate remaining fair value of property and equipment impaired	$	34,810	$	22,008

The Company’s impairment evaluations included testing of 519 retail locations and 496 retail locations during fiscal 2023 and fiscal 2022, respectively, which were deemed to have possible impairment indicators. The Company concluded that 80 retail locations and 42 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.