Drive Shack Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION (Tables)

PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Depreciation is calculated using the straight-line method based on the lesser of the following estimated useful lives or the lease term:


Buildings and improvements			10-40 years
Finance leases - equipment			2-6 years
Furniture, fixtures, and equipment			2-7 years

The following table summarizes the Company's property and equipment:


	December 31, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Depreciation		Net Carrying Value		Gross Carrying Amount		Accumulated Depreciation		Net Carrying Value
Land	$	6,770	$	—	$	6,770	$	6,770	$	—	$	6,770
Buildings and improvements	155,086		(46,399)		108,687		142,635		(40,198)		102,437
Furniture, fixtures and equipment	56,809		(28,821)		27,988		51,622		(24,422)		27,200
Finance leases - equipment	29,886		(15,602)		14,284		34,339		(15,296)		19,043
Construction in progress	21,531		—		21,531		13,975		—		13,975
Total Property and Equipment	$	270,082	$	(90,822)	$	179,260	$	249,341	$	(79,916)	$	169,425

Below is a summary of the traditional golf properties sold during 2020 and 2019 (in millions). No traditional golf properties were sold during 2021:


During the three months ended	Number of Golf Properties Sold	Sale Price		Net Proceeds (A)		Transaction Costs		Carrying Value		Gain (Loss) (B)		Management Agreements Executed Subsequent to Sale


March 31, 2019 (C)	3	$	28.7	$	25.5	$	0.5	$	20.3	$	5.2	1
June 30, 2019 (D)	4	$	19.7	$	17.9	$	0.8	$	18.3	$	(0.4)	1
September 30, 2019	1	$	12.5	$	12.3	$	0.2	$	5.2	$	7.0	1
December 31, 2019	3	$	19.1	$	18.6	$	0.4	$	10.9	$	7.7	2
December 31, 2020	1	$	34.5	$	33.6	$	0.9	$	17.0	$	16.6	1

(A)Net proceeds are inclusive of transaction costs.

(B)The gain (loss) on sale is recorded in pre-tax other income (loss), net on the Consolidated Statements of Operations.

(C)The Company received sale proceeds of $17.7 million during the three months ended March 31, 2019, consisting of $18.2 million for the golf properties sold during the three months ended March 31, 2019, and $2.2 million for golf properties that were sold during December 2018, less $2.7 million that was remitted to buyers for golf properties that were sold during December 2018. The Company previously received a $9.4 million cash deposit in 2018 related to a golf property that was sold in 2019. The difference between the sales price and the net proceeds was primarily due to prepaid membership dues that we are obligated to remit to the buyer, including $2.1 million payable to the buyer of a golf property sold during the three months ended March 31, 2019.

(D)The Company received sale proceeds of $14.9 million during the three months ended June 30, 2019, consisting of $18.4 million for the golf properties sold during the three months ended June 30, 2019, less $3.5 million that was remitted to buyers for golf properties that were sold in 2018 and the first quarter of 2019.