Property and Equipment

12 Months Ended

Jan. 28, 2017

Property, Plant and Equipment [Abstract]

Property and equipment is summarized as follows (in thousands):



	Jan 28, 2017		Jan 30, 2016
Land and land improvements	$	2,750	$	2,750
Building and building improvements	47,673		29,501
Leasehold improvements	367,294		354,524
Furniture, fixtures and equipment	353,843		343,537
Construction in progress	13,163		7,307
Properties under capital lease	—		18,421
	784,723		756,040
Less accumulated depreciation and amortization	541,718		500,696
	$	243,005	$	255,344

During the fourth quarter of fiscal 2016, the Company purchased, for approximately $28.8 million, the facility that houses its U.S. distribution center.

Construction in progress represents the costs associated with the construction in progress of leasehold improvements to be used in the Company’s operations, primarily for new and remodeled stores in retail operations.

The Company leased a building in Florence, Italy under a capital lease which provided for minimum lease payments through May 1, 2016, at which point, the title of the building was transferred to the Company. The accumulated depreciation and amortization related to the property under the capital lease was approximately $6.2 million as of January 30, 2016 and was included in depreciation expense when recognized. See Note 8 for information regarding the associated capital lease obligation.

Impairment

The Company recorded asset impairment charges of $34.4 million, $2.3 million and $24.8 million for fiscal 2017, fiscal 2016 and fiscal 2015, respectively. The asset impairment charges related primarily to the impairment of certain retail locations in North America resulting from under-performance and expected store closures during each of the respective periods. Refer to Note 17 for more information regarding asset impairment charges by segment.

Impairments to long-lived assets are summarized as follows (in thousands):



	Jan 28, 2017		Jan 30, 2016
Aggregate carrying value of all long-lived assets impaired	$	36,103	$	2,469
Less asset impairment charges	34,385		2,287
Aggregate remaining fair value of all long-lived assets impaired	$	1,718	$	182

The Company’s impairment evaluations included testing of 255 retail locations and 122 retail locations during fiscal 2017 and fiscal 2016, respectively, which were deemed to have impairment indicators. The Company concluded that 148 retail locations and 22 retail locations, respectively, were determined to be impaired, as the carrying amounts of the assets exceeded their estimated fair values (determined based on discounted cash flows) at each of the respective dates. Refer to Note 1 for a description of other assumptions that management considers in estimating the future discounted cash flows. If actual results are not consistent with the assumptions and judgments used in estimating future cash flows and asset fair values, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations.