Property, Plant and Equipment and Leasehold Intangibles, Net

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment and Leasehold Intangibles, Net [Abstract]

Property, Plant and Equipment and Leasehold Intangibles, Net

6.       Property, Plant and Equipment and Leasehold Intangibles, Net

As of December 31, 2016 and 2015, net property, plant and equipment and leasehold intangibles, which include assets under capital and financing leases, consisted of the following (in thousands):

	2016			2015
Land	$	455,307		$	486,567
Buildings and improvements		5,053,204			5,260,826
Leasehold improvements		126,325			100,430
Furniture and equipment		974,516			895,447
Resident and leasehold operating intangibles		705,000			783,434
Construction in progress		69,803			138,054
Assets under capital and financing leases		2,879,996			2,909,653
		10,264,151			10,574,411
Accumulated depreciation and amortization		(2,884,846	)		(2,543,035	)
Property, plant and equipment and leasehold intangibles, net	$	7,379,305		$	8,031,376

During the years ended December 31, 2016, 2015 and 2014, the Company evaluated property, plant and equipment and leasehold intangibles for impairment and identified properties with a carrying amount of the assets in excess of the estimated future undiscounted net cash flows expected to be generated by the assets. The Company compared the estimated fair value of the assets to their carrying value for these identified properties and recorded an impairment charge for the excess of carrying value over fair value. The Company recorded property, plant and equipment and leasehold intangibles non-cash impairment charges in its operating results  of $166.2 million for the year ended December 31, 2016, primarily within the Assisted Living and CCRCs - Rental segments, $24.3 million for the year ended December 31, 2015, primarily within the Assisted Living and CCRCs - Rental segments and $10.0 million for the year ended December 31, 2014, primarily within the CCRCs – Rental and Assisted Living segments. These impairment charges are primarily due to lower than expected operating performance at these properties and reflect the amount by which the carrying values of the assets exceeded their estimated fair value.

During the years ended December 31, 2016 and 2015, the Company recorded $15.8 million and $33.6 million, respectively, of non-cash impairment charges related to communities identified as held for sale, inclusive of the allocation of goodwill to the disposed communities. These impairment charges are primarily due to the excess of carrying value, including allocated goodwill, over the estimated selling price less costs to dispose. Refer to Note 4 for more information about the Company's community dispositions and assets held for sale.

For the years ended December 31, 2016, 2015 and 2014, the Company recognized depreciation and amortization expense on its property, plant and equipment and leasehold intangibles of $514.2 million, $721.0 million and $529.1 million, respectively.

Future amortization expense for resident and leasehold operating intangibles is estimated to be as follows (dollars in thousands):

Year Ending December 31,	Future Amortization
2017	$	9,664
2018		7,601
2019		6,209
2020		4,353
2021		2,731
Thereafter		9,958
Total	$	40,516

In connection with the acquisition of Emeritus, the Company recorded intangible assets for resident-in-place leases and below market operating lease intangibles. The Company is amortizing the resident-in-place leases and below market operating lease intangibles over their estimated weighted average useful lives of one and nine years, respectively.