Property and Equipment (Notes)

12 Months Ended

Dec. 31, 2022

Property and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

The major classes of assets and total accumulated depreciation and amortization were as follows:

		As of December 31,
(in thousands)	Average Useful Life	2022		2021
Land and building	27.5 (Building)	$	890	$	968
Leasehold improvements	Lesser of remaining lease or asset life	85,974		85,137
Machinery and equipment	10 years	7,617		7,864
Furniture and fixtures	3 to 5 years	12,508		11,650
Computer equipment and software	3 to 10 years	75,004		72,857
Construction in progress		8,662		671
		190,655		179,147
Less impairments and disposals (1)		(14,271)		(14,701)
Less accumulated depreciation and amortization		(135,720)		(128,656)
Property and equipment - net		$	40,664	$	35,790

(1) Due to the COVID-19 pandemic, impairments were recorded related to stores in 2021 (see below for further explanation). In 2021, impairments include disposals.

Depreciation and amortization expense related to property and equipment included in operating expenses amounted to approximately $11,576, $12,533, and $13,350 in 2022, 2021 and 2020, respectively, and includes computer software amortization expense for 2022, 2021, and 2020 of $3,505, $3,135, and $3,007, respectively.

Property and equipment, along with other long-lived assets, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. In 2021, the Company identified indicators of impairment for long-lived assets at certain retail stores. For such stores, the Company performed a recoverability test, comparing estimated undiscounted cash flows to the carrying value of the related long-lived assets. When the carrying value was more than the estimated undiscounted cash flows, the Company determined that an impairment test was required. Fair values of the long-lived assets were estimated using an income approach based on management’s forecast of future cash flows derived from continued retail operations and the fair values of individual operating lease assets were determined using estimated market rental rates. Significant estimates are used in determining future cash flows of each store over its remaining lease term, including the Company's expectations of future projected cash flows that include revenues, operating expenses, and market conditions. An impairment loss is recorded if the carrying amount of the long-lived asset group exceeds its fair value. As a result, the Company recorded an impairment charge of $409 and $14,712 related to furniture fixtures and leasehold improvements for the years ended December 31, 2021 and 2020, respectively. These impairment charges were recorded in the Direct-to-Consumer segment.