PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consisted of (in thousands):



	February 1, 2014			February 2, 2013
Land	$	37,453		$	36,890
Buildings	296,382			297,243
Furniture, fixtures and equipment	689,815			707,061
Information technology	369,257			289,656
Leasehold improvements	1,414,939			1,449,568
Construction in progress	33,791			90,573
Other	44,075			44,081
Total	$	2,885,712		$	2,915,072
Less: Accumulated depreciation and amortization	(1,754,371		)	(1,606,840		)
Property and equipment, net	$	1,131,341		$	1,308,232

Long-lived assets, primarily comprised of property and equipment, are reviewed periodically for impairment or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Factors used in the evaluation include, but are not limited to, management’s plans for future operations, recent operating results, and projected cash flows.

In Fiscal 2013, the Company incurred non-cash asset impairment charges of $46.7 million, as a result of the impact of sales trends on the profitability of a number of stores identified in the third quarter of Fiscal 2013 as well as the fiscal year-end review of store-related long-lived assets. The non-cash asset impairment charges included in Asset Impairment on the Consolidated Statement of Operations and Comprehensive Income, primarily related to 23 Abercrombie & Fitch stores, four abercrombie kids stores and 70 Hollister stores. In addition, the Company incurred $37.9 million related to the Gilly Hicks restructuring.

In Fiscal 2012, as a result of the fiscal year-end review of long-lived store-related assets, the Company incurred non-cash store-related asset impairment charges of $7.4 million included in Asset Impairment on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2012. The asset impairment charge was primarily related to one Abercrombie & Fitch stores, three abercrombie kids stores, 12 Hollister stores, and one Gilly Hicks store.

In Fiscal 2011, as a result of the fiscal year-end review of long-lived store-related assets, the Company incurred non-cash store-related asset impairment charges of $68.0 million, included in Asset Impairment on the Consolidated Statement of Operations and Comprehensive Income for Fiscal 2011. The asset impairment charge was related to 14 Abercrombie & Fitch stores, 21 abercrombie kids stores, 42 Hollister stores, and two Gilly Hicks stores.

Store-related assets are considered level 3 assets in the fair value hierarchy and the fair values were determined at the individual store level, primarily using a discounted cash flow model. The estimation of future cash flows from operating activities requires significant estimates of factors that include future sales, gross margin performance and operating expenses. In instances where the discounted cash flow analysis indicated a negative value at the store level, the market exit price based on historical experience was used to determine the fair value by asset type. Included in property and equipment, net, are store-related assets previously impaired and measured at a fair value of $14.2 million and $10.2 million, net of accumulated depreciation, as of February 1, 2014 and February 2, 2013, respectively.

The following table presents quantitative information related to the unobservable inputs used in the Company's level 3 fair value measurements for the impairment loss incurred in Fiscal 2013.



UNOBSERVABLE INPUT	VALUE
Weighted average cost of capital ⁽¹⁾	11%
Annual revenue growth rates ⁽²⁾	2%


⁽¹⁾	The Company utilized the year-end weighted average cost of capital in the discounted cash flow model.


⁽²⁾	The Company utilized an annual revenue growth rate in the discounted and undiscounted cash flow model.

See Note 19, "GILLY HICKS RESTRUCTURING," for information on impairment charges incurred in relation to the decision to close the stand-alone Gilly Hicks stores in the third quarter of Fiscal 2013.

In certain lease arrangements, the Company is involved with the construction of the building. If it is determined that the Company has substantially all of the risks of ownership during construction of the leased property and therefore is deemed to be the owner of the construction project, the Company records an asset for the amount of the total project costs and an amount related to the value attributed to the pre-existing leased building in Property and Equipment, Net and the related financing obligation in Leasehold Financing Obligations on the Consolidated Balance Sheets. Once construction is complete, if it is determined that the asset does not qualify for sale-leaseback accounting treatment, the Company continues to amortize the obligation over the lease term and depreciates the asset over its useful life. The Company had $52.3 million and $55.2 million of construction project assets in Property and Equipment, Net at February 1, 2014 and February 2, 2013, respectively.