Property, Plant and Equipment

12 Months Ended

Jul. 31, 2014

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)	2014			2013
Equipment	$	438,899		$	436,127
Land and buildings		53,895			51,294
Computer software		116,775			105,449
Leasehold improvements		42,190			45,141
Furniture and fixtures		6,249			6,187
		658,008			644,198
Less accumulated depreciation and amortization		(576,248	)		(563,456	)
Property, plant and equipment, net	$	81,760		$	80,742

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 at that time: (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 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.

In fiscal 2014, the Company began renovations of the first four floors of its 520 Broad Street building in order to move its personnel and offices currently located at 550 Broad Street, Newark, New Jersey to 520 Broad Street. The move is expected to occur during fiscal 2015. The Company also plans to lease or sell the office space on the other floors, although there are no potential tenants or buyers at this time. At both July 31, 2014 and 2013, the carrying value of the land, building and improvements at 520 Broad Street after the impairment charge was $37.7 million.

Depreciation and amortization expense of property, plant and equipment was $15.7 million, $14.3 million and $15.9 million in fiscal 2014, fiscal 2013 and fiscal 2012, respectively.