Property and Equipment

12 Months Ended

Jan. 30, 2021

Property, Plant and Equipment [Abstract]

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


	Jan 30, 2021		Feb 1, 2020
Land, buildings and improvements	$	53,553	$	51,416
Leasehold improvements	374,666		388,733
Furniture, fixtures and equipment	426,044		428,121
Construction in progress	6,486		9,510
Assets under finance leases	30,663		21,599
	891,412		899,379
Less accumulated depreciation and amortization	675,216		611,267
	$	216,196	$	288,112

During fiscal 2021 and 2020, the Company entered into finance and operating leases related primarily to computer hardware and software. The accumulated depreciation and amortization related to assets under finance leases was approximately $10.1 million and $5.6 million as of January 30, 2021 and February 1, 2020, respectively, and was included in depreciation expense when recognized. See Note 8 for more information regarding the related finance lease obligations.

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.

Impairment

The Company recorded asset impairment charges related to property and equipment of $35.0 million, $7.5 million and $6.9 million in fiscal 2021, fiscal 2020 and fiscal 2019, respectively. The asset impairment charges related to certain retail locations primarily in North America, Europe and Asia driven by lower revenue and future cash flow projections from the ongoing effects of the COVID-19 pandemic in fiscal 2021. The asset impairment charges for fiscal 2020 and fiscal 2019 related primarily to certain retail locations in Asia, Europe and North America resulting from the underperformance and expected store closures.

Impairments to property and equipment are summarized as follows (in thousands):


	Jan 30, 2021		Feb 1, 2020
Aggregate carrying value of property and equipment impaired	$	36,050	$	8,456
Less property and equipment impairment charges	34,996		7,546
Aggregate remaining fair value of property and equipment impaired	$	1,054	$	910

The Company’s impairment evaluations included testing of 834 retail locations and 314 retail locations during fiscal 2021 and fiscal 2020, respectively, which were deemed to have impairment indicators. The Company concluded that 373 retail locations and 101 retail locations, respectively, were determined to be impaired, as the carrying amounts of the fixed 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.