Annual report pursuant to Section 13 and 15(d)

Property And Equipment

v3.20.4
Property And Equipment
12 Months Ended
Dec. 31, 2020
Property And Equipment [Abstract]  
Property And Equipment

8.    Property and Equipment



The Company’s property and equipment consisted of the following (in thousands): 





 

 

 

 

 

 



 

December 31,



 

2020

 

2019

Land, building and building improvements

 

$  

2,271 

 

 

2,258 

Leasehold improvements

 

 

5,554 

 

 

35,768 

Office equipment, furniture, fixtures and software

 

 

14,421 

 

 

11,941 

Transportation

 

 

515 

 

 

379 



 

 

22,761 

 

 

50,346 

Accumulated depreciation

 

 

(14,958)

 

 

(20,510)

Property and equipment, net

 

$  

7,803 

 

 

29,836 



During the years ended December 31, 2020, 2019, and 2018, the Company recognized approximately $5.1 million,  $6.4 million, and $7.5 million, respectively, of depreciation expense from continuing operations related to its property and equipment which is reflected in selling, general and administrative expenses and cost of trade sales in the Company’s statements of operations and comprehensive income.



As described in Note 2, the Company tests its long-lived assets, including property and equipment, for recoverability whenever events or changes in circumstances indicate that the carrying amount of such assets or asset groups may not be recoverable. During the year ended December 31, 2020, the Company concluded that the effects of the COVID-19 pandemic indicated that the carrying amount of certain of its property and equipment may not be recoverable, including asset groups associated with certain of its retail locations which were temporarily closed as a result of the pandemic. In such circumstances, the Company compared its estimated undiscounted cash flows expected to result from the use of such assets or asset groups with their respective carrying amounts, and to the extent that such carrying amounts were in excess of the related undiscounted cash flows, the Company estimated the fair values of the applicable assets or asset groups and recognized impairment losses based on the excess of the carrying amounts of such assets or asset groups over their estimated fair values.



As a result of the Company’s testing of its property and equipment for impairment, the Company recognized impairment losses of $1.3 million during the year ended December 31, 2020 related primarily to leasehold improvements associated with certain of IT’SUGAR’s retail locations. The recognition of these impairment losses primarily resulted from the effects of the COVID-19 pandemic on the estimated cash flows expected to be generated by the related assets. The Company did not record any impairment losses from continuing operations related to property and equipment during the years ended December 31, 2019 and 2018.