Property and Equipment

12 Months Ended

Dec. 31, 2022

Property and Equipment

Property and Equipment

2. Property and Equipment

Property and equipment at December 31 is recorded at cost, with the exception of right-of-use finance leases and assets acquired in an acquisition, and summarized as follows (amounts in thousands):

	2022		2021
Land and land improvements	$	443,469	$	378,598
Buildings		3,785,968		3,601,974
Furniture, fixtures and equipment		1,015,078		981,589
Right-of-use finance lease assets		1,613		1,613
Construction-in-progress		50,312		14,337
		5,296,440		4,978,111
Accumulated depreciation and amortization		(2,124,732)		(1,946,267)
Property and equipment, net	$	3,171,708	$	3,031,844

Depreciation expense, including amortization of assets under finance lease obligations, during 2022, 2021 and 2020 was $184.7 million, $178.8 million, and $173.3 million, respectively.

In June 2017, the Company entered into an agreement with the Industrial Development Board of the Metropolitan Government of Nashville and Davidson County (the “Board”) to implement a tax abatement plan related to Gaylord Opryland. The tax abatement plan provides for the capping of real property taxes for a period of eight years by legally transferring title to the Gaylord Opryland real property to the Board. The Board financed the acquisition of the Gaylord Opryland real property by issuing a $650 million industrial revenue bond to the Company. The Board then leased this property back to the Company. The Company is obligated to make lease payments equal to the debt service on the industrial revenue bond. No cash was exchanged, and no cash will be exchanged in connection with the Company’s lease payments under the lease. The tax abatement period extends through the term of the lease, which coincides with the nine-year maturity of the bond. At any time, the Company has the option to repurchase the real property at a de minimis amount. Due to the form of these transactions, the Company has not recorded the bond or the lease obligation associated with the sale lease-back transaction, and the cost of the Gaylord Opryland real property remains recorded on the balance sheet and is being depreciated over its estimated useful life.