PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS

12 Months Ended

Jan. 30, 2016

Property, Plant and Equipment [Abstract]

PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS

NOTE 4 - PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS

The components of property, equipment and leasehold improvements were as follows (in thousands):

	January 30, 2016		January 31, 2015
Land	$	1,842	$	1,842
Buildings and improvements	15,633		15,633
Fixtures and equipment	517,485		489,243
Leasehold improvements	398,406		360,594
Property, equipment and leasehold improvements	933,366		867,312
Less: Accumulated depreciation	621,649		581,862
Property, equipment and leasehold improvements, net	$	311,717	$	285,450

Depreciation expense and impairment charges were as follows for each period presented (in thousands):

	Fiscal Year
	2015		2014		2013
Depreciation expense	$	66,998	$	62,791	$	61,885
Impairment charges(a)	10,580		636		8,017
Total depreciation and impairment (b)	$	77,578	$	63,427	$	69,902

^(a) We review the performance of our stores on an ongoing basis and recognize impairment charges for the difference between the carrying value and fair value of the store when store cash flow trends indicate that the carrying value of property, equipment and leasehold improvements may not be fully recoverable. Store impairment charges are recorded in cost of sales and related buying, occupancy and distribution expenses. Impairment charges recognized in 2015 are related to our strategic store closure plan. Impairment charges recognized in 2013 include $7.3 million associated with Steele's, which was disposed of on March 7, 2014. See Note 15 for additional disclosures on the Steele's divestiture.

^(b) Depreciation expense and impairment charges included in cost of sales for 2015, 2014 and 2013 were $67.9 million, $50.9 million and $49.2 million, respectively.

As part of a strategic evaluation of our store portfolio in 2015, we announced a multi-year plan to close stores that we believe do not have the potential to meet our sales productivity and profitability standards. We expect to close approximately 100 underperforming stores representing nearly 5% of total sales, including the 23 stores that were closed in 2015 and approximately 25 to 30 stores expected to close in 2016, with the majority expected to be closed by the end of 2017.