PROPERTY AND EQUIPMENT

6 Months Ended

Aug. 02, 2014

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

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

	Asset Life	August 2, 2014			February 1, 2014			August 3, 2013
Property and equipment:
Land and land improvements	—	$	3,403		$	3,403		$	3,403
Building and improvements	20-25 yrs	35,548			35,548			35,548
Material handling equipment	10-15 yrs	48,479			48,345			48,345
Leasehold improvements	3-15 yrs	347,737			350,451			372,771
Store fixtures and equipment	3-10 yrs	235,772			234,151			242,498
Capitalized software	3-10 yrs	105,522			63,874			71,913
Construction in progress	—	14,327			43,213			24,628
		790,788			778,985			799,106
Accumulated depreciation and amortization		(479,578		)	(466,836		)	(487,239		)
Property and equipment, net		$	311,210		$	312,149		$	311,867

At August 2, 2014, the Company performed impairment testing on 995 stores with a total net book value of approximately $144.4 million. During the Second Quarter 2014, the Company recorded asset impairment charges of $3.0 million for 30 stores, of which 19 were fully impaired and 11 were partially impaired. At August 2, 2014, the aggregate net book value of the stores that were partially impaired was approximately $1.3 million, which the Company determined to be recoverable based on an estimate of discounted future cash flows.

At August 3, 2013, the Company performed impairment testing on 1,050 stores with a total net book value of approximately $160.2 million. During the Second Quarter 2013, the Company recorded store asset impairment charges of $12.7 million for 75 stores, of which 48 were fully impaired and 27 partially impaired. At August 3, 2013, the aggregate net book value of the stores that were partially impaired was approximately $3.5 million, which the Company determined to be recoverable based on an estimate of discounted future cash flows.

During the Second Quarter 2013 the Company established a strategic long term systems plan. As part of this plan, the Company concluded that certain development costs previously incurred were no longer relevant and deemed certain systems to be obsolete and needed to be replaced by enhanced capabilities in order to incorporate industry best practices as well as service our international franchisees and wholesale business partners. Accordingly, the Company recorded asset impairment charges of $9.1 million and incurred $1.2 million of selling, general and administrative expenses related to the write-down of some previously capitalized development costs and obsolete systems.

As of August 2, 2014, February 1, 2014 and August 3, 2013, the Company had approximately $6.9 million, $10.2 million and $3.5 million, respectively, in property and equipment for which payment had not yet been made.  These amounts are included in accounts payable and accrued expenses and other current liabilities.