PROPERTY AND EQUIPMENT

12 Months Ended

Feb. 02, 2013

Property, Plant and Equipment [Abstract]

Property and equipment consist of the following (in thousands):



	Asset Life	February 2, 2013			January 28, 2012
Property and equipment:
Land and land improvements	—	$	3,403		$	3,403
Building and improvements	20-25 yrs	35,548			35,548
Material handling equipment	10-15 yrs	48,346			52,770
Leasehold improvements	Lease life	391,311			403,080
Store fixtures and equipment	3-10 yrs	265,030			287,838
Capitalized software	5 yrs	65,885			78,623
Construction in progress (1)	—	34,433			23,666
		843,956			884,928
Less accumulated depreciation and amortization		(513,855		)	(561,065		)
Property and equipment, net		$	330,101		$	323,863

____________________________________________


(1)	The majority of the Construction in progress at each reporting period relates to the Company's new enterprise resource planning system.

At February 2, 2013, the Company performed impairment testing on 1,045 stores with a total net book value of $175.3 million. At January 28, 2012, the Company performed impairment testing on 920 stores with a total net book value of $141.5 million. At January 29, 2011, the Company performed impairment testing on 903 stores with a total net book value of $145.8 million. All stores tested were open for at least two years. The Company tested and impaired one store that had been open for less than two years in which circumstances indicated that its assets were impaired.

During Fiscal 2012, the Company recorded $2.3 million of impairment charges primarily related to six underperforming stores, of which two were fully impaired and four were partially impaired. As of February 2, 2013, all of these impaired stores were open and the stores which were partially impaired had an aggregate remaining net book value of $0.8 million, which the Company determined to be recoverable based on an estimate of discounted future cash flows.

During Fiscal 2011, the Company recorded $2.2 million of impairment charges primarily related to seven underperforming stores, of which four were fully impaired and three were partially impaired. As of January 28, 2012, all of these impaired stores were open and the stores which were partially impaired had an aggregate remaining net book value of $0.7 million, which the Company determined to be recoverable based on an estimate of discounted future cash flows.

During Fiscal 2010, the Company recorded $2.7 million of impairment charges primarily related to eight underperforming stores, of which six were fully impaired and two were partially impaired. As of January 29, 2011, all of these impaired stores were open and the stores which were partially impaired had an aggregate remaining net book value of $0.7 million, which the Company determined to be recoverable based on an estimate of discounted future cash flows.

All underperforming stores were in the U.S.

During Fiscal 2012, the Company capitalized approximately $12.9 million of external software costs and approximately $3.8 million of internal programming and development costs. During Fiscal 2011, the Company capitalized approximately $18.7 million of external software costs and approximately $4.9 million of internal programming and development costs. During Fiscal 2010, the Company capitalized approximately $11.2 million of external software costs and approximately $1.3 million of internal programming and development costs. Amortization expense of capitalized software was approximately $7.4 million, $7.8 million and $7.8 million in Fiscal 2012, Fiscal 2011 and Fiscal 2010, respectively.

As of February 2, 2013, the Company had approximately $4.3 million in property and equipment for which payment had not been made, which was included in accrued expenses and other current liabilities.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details