Property and Equipment, Net

6 Months Ended

Jul. 29, 2017

Property, Plant and Equipment [Abstract]

Property and equipment, net consisted of:



(in thousands)	July 29, 2017			January 28, 2017
Property and equipment, at cost	$	2,812,369		$	2,772,139
Less: Accumulated depreciation and amortization	(2,018,995		)	(1,947,401		)
Property and equipment, net	$	793,374		$	824,738

Long-lived assets, primarily comprised of leasehold improvements, furniture, fixtures and equipment, are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the long-lived assets might not be recoverable. These include, but are not limited to, material declines in operational performance, a history of losses, an expectation of future losses, adverse market conditions and store closure or relocation decisions. On at least a quarterly basis, the Company reviews for indicators of impairment at the individual store level, the lowest level for which cash flows are identifiable.

Stores that display an indicator of impairment are subjected to an impairment assessment. The Company’s impairment assessment requires management to make assumptions and judgments related, but not limited, to management’s expectations for future operations and projected cash flows. The key assumptions used in the Company’s undiscounted future cash flow models include sales, gross profit and, to a lesser extent, operating expenses.

An impairment loss would be recognized when these undiscounted future cash flows are less than the carrying amount of the asset group. In the circumstance of impairment, the loss would be measured as the excess of the carrying amount of the asset group over its fair value. The key assumptions used in estimating the fair value of impaired assets may include projected cash flows and discount rate.

The Company incurred store asset impairment charges of $6.1 million and $6.9 million for the thirteen and twenty-six weeks ended July 29, 2017, respectively, and $6.4 million for the thirteen and twenty-six weeks ended July 30, 2016, as it was determined that the carrying value of certain assets was not expected to be recovered and exceeded fair value.

The Company had $37.8 million and $35.6 million of construction project assets in property and equipment, net at July 29, 2017 and January 28, 2017, respectively, related to the construction of buildings in certain lease arrangements where the Company is deemed to be the owner of the construction project.