Property, Plant And Equipment

12 Months Ended

Feb. 28, 2015

Property, Plant and Equipment [Abstract]

Property, Plant And Equipment

NOTE 8 – PROPERTY, PLANT AND EQUIPMENT

	February 28, 2015		February 28, 2014
Land	$	18,791	$	19,231
Buildings		178,924		201,619
Capitalized software		191,307		174,405
Equipment and fixtures		439,006		459,886
		828,028		855,141
Less accumulated depreciation		447,731		479,376
	$	380,297	$	375,765

During 2015, including the fixed assets that were part of the AGI In-Store and world headquarters dispositions, the Corporation disposed of approximately $138,000 of property, plant and equipment that included accumulated depreciation of approximately $86,000. During 2014, the Corporation disposed of approximately $27,000 of property, plant and equipment that included accumulated depreciation of approximately $24,000. Also, continued operating losses and negative cash flows led to testing for impairment of long-lived assets in the Retail Operations segment in accordance with ASC 360. As a result, fixed asset impairment charges of $3,660 and $258 were recorded in “Selling, distribution and marketing expenses” on the Consolidated Statement of income for 2015 and 2014, respectively. The charges represent the difference between the carrying values of the assets and the future net discounted cash flows estimated to be generated by those assets.

Depreciation expense totaled $56,056, $50,493 and $44,326 in 2015, 2014 and 2013, respectively. Interest expense capitalized was $1,147, $3,748 and $2,355 in 2015, 2014 and 2013, respectively.

Included in “Buildings” as of February 28, 2015 in the table above is an amount related to a building that will function as the future world headquarters for the Corporation. This is in connection with an operating lease with H L & L Property Company (“H L & L”). The building is currently being constructed and expected to be available for occupancy in calendar year 2016.

H L & L is an indirect affiliate of the Corporation as it is indirectly owned by members of the Weiss Family (as defined in Note 18). Due to, among other things, the Corporation’s involvement in the construction of the building, the Corporation is required to be treated, for accounting purposes only, as the “deemed owner” of the new world headquarters building during the construction period. Accordingly, the Corporation has recorded an asset and associated offsetting liability during the construction of the building, even though the Corporation does not own the asset and is not the obligor on the corresponding construction debt. As of February 28, 2015, the asset and corresponding liability was $31,662. See Note 18 for further information.