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PROPERTY AND EQUIPMENT
12 Months Ended
Feb. 03, 2024
PROPERTY AND EQUIPMENT  
PROPERTY AND EQUIPMENT

NOTE 5—PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

    

FEBRUARY 3,

    

JANUARY 28, 

2024

2023 

(in thousands)

Finance lease right-of-use assets(1)

$

1,104,365

$

1,303,133

Leasehold improvements(2)

434,220

391,912

Building and building improvements(3)

 

334,996

 

94,508

Computer software

 

173,378

 

147,553

Land

 

106,347

 

97,670

Furniture, fixtures and equipment

 

97,990

 

86,456

Machinery, equipment and aircraft

 

82,962

 

79,836

Built-to-suit property(4)

37,057

37,057

Total property and equipment

2,371,315

2,238,125

Less—accumulated depreciation and amortization(5)

 

(685,457)

 

(602,141)

Total property and equipment—net

$

1,685,858

$

1,635,984

(1)Refer to “Lease Accounting” within Note 3—Significant Accounting Policies and Note 10—Leases.
(2)Includes construction in progress of $39 million and $8.0 million as of February 3, 2024 and January 28, 2023, respectively.
(3)Includes $126 million and $92 million of owned buildings under construction related to future Design Galleries as of February 3, 2024 and January 28, 2023, respectively. Additionally, includes the purchase of the RH Guesthouse New York building in fiscal 2023. Refer to Note 10—Leases.
(4)During fiscal 2021, we opened the Dallas Design Gallery. During the construction period of this Design Gallery, we were the “deemed owner” for accounting purposes and classified the construction costs as a build-to-suit asset. Upon construction completion and lease commencement, we performed a sale-leaseback analysis and determined that we cannot derecognize the build-to-suit asset. Therefore, the asset remains classified as a build-to-suit asset and is depreciated over the term of the useful life of the asset.
(5)Includes accumulated amortization related to finance lease right-of-use assets of $268 million and $224 million as of February 3, 2024 and January 28, 2023, respectively. Refer to Note 10—Leases.

We recorded depreciation of property and equipment, excluding amortization for finance lease right-of-use assets, of $64 million, $56 million and $52 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively.