Property and Equipment

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property and equipment consist of the following at fiscal year end:



	Useful Life	2012			2011
	(Years)	(In thousands)
Land	—	$	97,603		$	97,406
Buildings and improvements	2 to 50	1,459,934			1,380,723
Leasehold improvements	1 to 29	257,848			253,492
Equipment	3 to 10	133,876			111,943
Furnitures, fixtures and computer software	1 to 7	29,018			22,002
Facility construction in progress		15,272			63,974
Total		$	1,993,551		$	1,929,540
Less accumulated depreciation and amortization		(306,392		)	(241,184		)
Property and equipment, net		$	1,687,159		$	1,688,356

The Company depreciates its leasehold improvements over the shorter of their estimated useful lives or the terms of the leases including renewal periods that are reasonably assured. The Company’s construction in progress primarily consists of facilities under construction that are owned by the Company. Interest capitalized in property and equipment was $1.2 million and $3.1 million for the fiscal years ended December 31, 2012 and January 1, 2012, respectively.

Depreciation expense was $72.2 million, $61.6 million and $37.7 million, respectively, for the fiscal years ended December 31, 2012, January 1, 2012 and January 2, 2011, respectively.

At December 31, 2012 and January 1, 2012, the Company had $18.2 million and $18.2 million of assets recorded under capital leases including $17.5 million related to buildings and improvements and $0.7 million related to equipment, furniture and fixtures. Capital leases are recorded net of accumulated amortization of $6.3 million and $5.5 million, at December 31, 2012 and January 1, 2012, respectively. Depreciation expense related to capital leases for the fiscal years ended December 31, 2012, January 1, 2012, and January 2, 2011 was $0.8 million, $0.8 million and $0.8 million, respectively, and is included in Depreciation and Amortization in the accompanying consolidated statements of comprehensive income.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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