Property and Equipment

12 Months Ended

Dec. 31, 2016

Property Plant And Equipment [Abstract]

Note 6. Property and Equipment

Property and equipment consisted of the following:

	December 31,
(in thousands)	2016			2015
Land and land interests⁽¹⁾	$	31,670		$	29,032
Buildings and leasehold improvements		185,987			135,381
Equipment and other⁽²⁾		326,868			270,957
Gross property and equipment		544,525			435,370
Accumulated depreciation		(264,667	)		(246,131	)
Property and equipment, net	$	279,858		$	189,239

⁽¹⁾

Land and land interests include certain leasehold interests in land within Pursuit for which the Company is considered to have perpetual use rights. As of December 31, 2016 and 2015, the carrying amount of these leasehold interests was $7.9 million and $7.7 million, respectively. These land interests are not subject to amortization.

⁽²⁾	Equipment and other includes capitalized costs incurred in developing or obtaining internal and external use software. As of December 31, 2016 and 2015, the net carrying amount of capitalized software was $11.9 million and $12.3 million, respectively.

Depreciation expense was $33.6 million for 2016 and $28.1 million for 2015 and 2014.

During 2016, 2015, and 2014, non-cash increases to property and equipment related to assets acquired under capital leases was $1.2 million, $1.0 million, and $0.9 million, respectively. In addition, during 2016, 2015, and 2014, non-cash increases to property and equipment in accounts payable and accrued liabilities was $0.9 million, $2.3 million, and $0.8 million, respectively.

Viad recorded impairment charges of $0.2 million, $0.1 million, and $0.9 million during 2016, 2015, and 2014, respectively. The 2016 amount related to the write-down of certain software and buses in Pursuit. The 2015 amount related to the write-off of certain software in Pursuit. The 2014 amount related to the write-off of certain internally developed software at GES. These impairment losses are included in other impairment charges in Viad’s Consolidated Statements of Operations.

The Mount Royal Hotel in Banff, Canada suffered fire damage on December 29, 2016 and has been closed until further notice. As a result of the fire, an impairment loss of $2.2 million was recorded against the net book value of the hotel assets. The losses related to the fire are covered by Viad’s property and business interruption insurance. Accordingly, the Company recorded an offsetting impairment recovery of $2.2 million. Assessment of the full value of the loss is ongoing.