Quarterly report pursuant to Section 13 or 15(d)

PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION

v3.10.0.1
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION
 9 Months Ended
Sep. 30, 2018
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION

The following table summarizes the Company’s property and equipment:
 
 
September 30, 2018
 
December 31, 2017
 
Gross Carrying Amount
 
Accumulated Depreciation
 
Net Carrying Value
 
Gross Carrying Amount
 
Accumulated Depreciation
 
Net Carrying Value
Land
$
5,105

 
$
—

 
$
5,105

 
$
88,251

 
$
—

 
$
88,251

Buildings and improvements
71,697

 
(26,318
)
 
45,379

 
154,769

 
(52,636
)
 
102,133

Furniture, fixtures and equipment
26,944

 
(16,581
)
 
10,363

 
33,109

 
(23,451
)
 
9,658

Capital leases - equipment
28,624

 
(11,832
)
 
16,792

 
24,949

 
(8,649
)
 
16,300

Construction in progress
23,943

 
—

 
23,943

 
24,916

 
—

 
24,916

Total Property and Equipment
$
156,313

 
$
(54,731
)
 
$
101,582

 
$
325,994

 
$
(84,736
)
 
$
241,258



On March 7, 2018, the Company announced it was actively pursuing the sale of 26 owned Traditional Golf properties in order to generate capital for reinvestment in the Entertainment Golf business. The assets and associated liabilities are reported on the Consolidated Balance Sheets as “Real estate assets, held-for-sale, net” and “Real estate liabilities, held-for-sale,” respectively.  Upon reclassification, the Company assessed the real estate assets, held-for-sale and determined that the carrying value of one property exceeded the fair value less anticipated costs to sell.  In March 2018, the Company recognized an impairment loss totaling approximately $1.3 million. The fair value measurement was based on the pricing in a letter of intent and internal valuation models. The significant inputs used to value these real estate investments fall within Level 3 for fair value reporting.

The real estate assets, held-for-sale, net are reported at a carrying value of $158.6 million and include $83.2 million of land, $72.2 million of buildings and improvements, $4.6 million of furniture, fixtures and equipment, and $2.8 million of other related assets, partially offset by accumulated impairment. The real estate liabilities, held-for-sale are reported at a carrying value of $5.1 million and include property liabilities to be assumed, primarily prepaid membership dues. In September 2018, the Company reassessed the real estate assets, held-for-sale, net and determined that the carrying value of two properties exceeded the fair value less anticipated costs to sell. As a result, the Company recognized an impairment loss and recorded accumulated impairment totaling approximately $4.2 million. The fair value measurements were based on executed purchase agreements. The significant inputs used to value these real estate investments fall within Level 3 for fair value reporting.

In July 2018, the Company consummated on the sale of a private golf property in Georgia for a sale price of $3.5 million resulting in net proceeds of $3.2 million after adjusting for liabilities assumed by the buyer, primarily related to prepaid dues. This resulted in a net loss on sale of $0.1 million based on the carrying value of net assets.