Quarterly report pursuant to Section 13 or 15(d)

(GAIN) LOSS ON LEASE TERMINATIONS AND IMPAIRMENT

v3.21.2
(GAIN) LOSS ON LEASE TERMINATIONS AND IMPAIRMENT
 6 Months Ended
Jun. 30, 2021
Other than Temporary Impairment Losses, Investments [Abstract]  
(GAIN) LOSS ON LEASE TERMINATIONS AND IMPAIRMENT (GAIN) LOSS ON LEASE TERMINATIONS AND IMPAIRMENT
The following table summarizes the amounts the Company recorded in the Consolidated Statements of Operations:
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
(Gain) Loss on lease terminations $ (655) $ (3,125) $ (655) $ (3,125)
Impairment on corporate office assets (held-for-use) —  —  3,303  — 
Impairment on traditional golf properties (held-for-use) —  —  —  792 
Other losses 94  —  —  — 
Total (Gain) Loss on lease terminations and impairment $ (561) $ (3,125) $ 2,648  $ (2,333)

(Gain) Loss on lease terminations -
During the three and six months ended June 30, 2021, the Company recorded a gain of $0.7 million on the termination of one traditional golf course lease. The gain related to the derecognition of long-lived, intangible, and ROU assets and membership deposit liability balances.
During the three and six months ended June 30, 2020, the Company recorded a gain of $3.1 million on the termination of two traditional golf course leases. The gains related to the derecognition of long-lived, intangible, and ROU assets and membership deposit liability balances.

Held-for-use impairment -
During the six months ended June 30, 2021, the Company recorded impairment charges of $3.3 million related to right-of-use and other lease related assets of our former headquarters office in New York given the relocation of the Company’s headquarters to Dallas, TX. This includes impairment of leasehold improvements of $0.1 million, furniture fixtures, and equipment of $0.6 million, and ROU assets of $2.3 million. The Company evaluated the recoverability of the carrying value of these assets using the income approach based on future assumptions of cash flows. The development of discounted cash flow models used to estimate the fair value of the asset groups required the application of significant judgement in determining market participant assumptions, including the projected sublease income over the remaining lease terms, expected downtime prior to the commencement of future subleases, expected lease incentives offered to future tenants, and discount rates that reflected the level of risk associated with these future cash flows. As the fair value inputs utilized are unobservable, the Company determined that the significant inputs used to value these properties fall within Level 3 for fair value reporting.

Other losses -
During the three months ended June 30, 2021, the Company recorded other losses totaling $0.1 million on retirement of other traditional golf assets.