Property, Plant and Equipment

12 Months Ended

Jul. 31, 2013

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

Note 5—Property, Plant and Equipment

Property, plant and equipment consist of the following:

July 31 (in thousands)	2013			2012
Equipment	$	436,127		$	431,709
Land and buildings		51,294			55,397
Computer software		105,449			96,750
Leasehold improvements		45,141			45,109
Furniture and fixtures		6,187			6,404
		644,198			635,369
Less accumulated depreciation and amortization		(563,456	)		(549,802	)
Property, plant and equipment, net	$	80,742		$	85,567

In fiscal 2013, the Company recorded an impairment charge of $4.4 million for the building and improvements that it owns at 520 Broad Street, Newark, New Jersey. The following facts and circumstances indicated that the fair value of the building and improvements may be less than their carrying value: (1) the building was not occupied and, at the time, the Company did not expect to occupy it, (2) economic uncertainty and sluggish leasing activity stalled a recovery of the real estate market in Newark, (3) there were no potential tenants, (4) no sale of the building had been completed and, at that time, there were no other likely buyers, (5) the building would be expensive to redevelop and (6) the building was expected to remain vacant for the foreseeable future. The Company determined the fair value of the building and improvements based on estimates of an owner/user's market rental rate net of costs of improvements and tenant work as well as the estimated value to an investor/developer after deducting costs of improvements and costs to achieve full occupancy. This fair value measurement was classified as Level 2 of the fair value hierarchy. At July 31, 2013, the carrying value of the land, building and improvements at 520 Broad Street after the impairment charge was $37.7 million. The Company is considering a range of options as to the future use or disposition of 520 Broad Street, some of which could result in an additional loss from a further reduction in the carrying value of the land, building and improvements and such loss could be material.

Depreciation and amortization expense of property, plant and equipment was $14.3 million, $15.9 million and $20.1 million in fiscal 2013, fiscal 2012 and fiscal 2011, respectively.