Annual report pursuant to Section 13 and 15(d)

PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION

v3.8.0.1
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION
 12 Months Ended
Dec. 31, 2017
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION

The following table summarizes the balances of property and equipment in the Traditional and Entertainment Golf businesses:

 
December 31, 2017
 
December 31, 2016
 
Gross Carrying Amount
 
Accumulated Depreciation
 
Net Carrying Value
 
Gross Carrying Amount
 
Accumulated Depreciation
 
Net Carrying Value
Land
$
88,251

 
$
—

 
$
88,251

 
$
84,319

 
$
—

 
$
84,319

Buildings and improvements
154,769

 
(52,636
)
 
102,133

 
144,690

 
(39,402
)
 
105,288

Furniture, fixtures and equipment
33,109

 
(23,451
)
 
9,658

 
29,132

 
(20,516
)
 
8,616

Capital leases - equipment
24,949

 
(8,649
)
 
16,300

 
20,844

 
(4,818
)
 
16,026

Construction in progress
24,916

 
—

 
24,916

 
3,362

 
—

 
3,362

Total Property and Equipment
$
325,994

 
$
(84,736
)
 
$
241,258

 
$
282,347

 
$
(64,736
)
 
$
217,611


During the years ended December 31, 2017 and 2016, the Company reported the disposal of gross property and equipment of $2.6 million and $5.5 million, respectively, and a corresponding reduction in accumulated depreciation of $1.0 million and $5.3 million, respectively.

Depreciation is calculated on a straight line basis using the estimated useful lives detailed in Note 2. Depreciation expense, which included depreciation of assets recorded under capital leases, was $21.0 million, $23.4 million and $24.9 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Impairments during 2016 include a property in New Jersey, a property in Oregon and a property in California. See Note 16 for additional information.

In January 2016, the lease on a golf property in Oregon expired and we did not renew the lease for such property. In July 2016, the lease on a golf property in California was terminated and we exited the property. In October 2016, the leases of golf properties in Georgia and California expired and we exited the properties.  In October 2016, we entered into a management agreement for a golf property in California. In December 2016, the lease on a golf property in Oklahoma expired and we exited the property.

In May 2017, the management agreement on a golf property in California expired and the Company exited the property. In December 2017, the lease expired on a golf property in Oklahoma and the Company exited the property.

In December 2017, the Company closed on the sale of a golf property in Oregon for $1.1 million. We recognized a loss of $0.5 million on the sale which is included in other loss, net in the Consolidated Statements of Operations.

In December 2017, the Company closed on the purchase of land in Raleigh, North Carolina for $5.0 million for the construction of an Entertainment Golf venue.

Certain real estate assets in Traditional Golf are encumbered by various debt obligations, as described in Note 7, at December 31, 2017.