Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

v2.4.1.9
Property and Equipment, Net
 3 Months Ended
Apr. 04, 2015
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net
Property and Equipment, Net
The Company’s fixed assets are stated at cost less accumulated depreciation, amortization and impairment. Depreciation and amortization expense are provided for in amounts sufficient to relate the cost of depreciable and amortizable assets to operations over their estimated service lives. Depreciation and amortization expense for the thirteen weeks ended April 4, 2015 and March 29, 2014 was $1,934 and $2,368, respectively, including amortization expense of $911 and $436 for the thirteen weeks ended April 4, 2015 and March 29, 2014, respectively, for capital leased assets related to the LaSalle, Illinois facility (see sale-leaseback discussion below for details). The cost and related accumulated depreciation of assets retired or otherwise disposed of are removed from the accounts and the resultant gain or loss is reflected in earnings.
Property and equipment consisted of the following at April 4, 2015 and January 3, 2015 (in thousands):
 
April 4, 2015
 
January 3, 2015
Land
$
630

 
$
630

Building
8,877

 
8,877

Machinery and equipment
10,274

 
9,799

Computer software (purchased and developed) and equipment
45,984

 
45,170

Vehicles
138

 
136

Leasehold improvements
1,762

 
1,761

Furniture and fixtures
1,173

 
1,036

Construction in process
1,681

 
1,904

 
70,519

 
69,313

Less accumulated depreciation, amortization and impairment
(53,829
)
 
(52,347
)
Property and equipment, net
$
16,690

 
$
16,966


On April 17, 2013, the Company’s wholly-owned subsidiary, Whitney Automotive Group, Inc. (“WAG”) entered into a sales leaseback transaction with STORE Master Funding III, LLC ("STORE") for its facility in LaSalle, Illinois. Under the terms of the lease, the Company is required to pay all taxes associated with the lease, pay for any required maintenance on the property, maintain certain levels of insurance and indemnify STORE for losses incurred that are related to the Company’s use or occupancy of the property. The lease was accounted for as a capital lease and the $376 excess of the net proceeds over the net carrying amount of the property is amortized in interest expense on a straight-line basis over the lease term of 20 years. As of April 4, 2015, the gross carrying value, the accumulated depreciation and the net carrying value of all capital leased assets included in property and equipment were $9,964, $1,239 and $8,725, respectively.
Construction in process primarily relates to the Company’s internally developed software (refer to caption “Website and Software Development Costs” in “Note 1 – Summary of Significant Accounting Policies and Nature of Operations”) subject to depreciation and amortization upon placement into service. Certain of the Company’s net property and equipment were located in the Philippines as of April 4, 2015 and January 3, 2015, in the amount of $192 and $244, respectively.