Property and Equipment

12 Months Ended

Dec. 31, 2016

Property Plant And Equipment [Abstract]

6. PROPERTY AND EQUIPMENT

The cost basis and estimated useful lives of property and equipment for continuing operations as of December 31, 2016 and 2015 are as follows (dollars in thousands):

	December 31,
	2016			2015			Life
Leasehold improvements	$	228,551		$	264,282		Shorter of Life of Lease or Useful Life
Computer hardware and software		110,013			124,899		3 years
Furniture, fixtures and equipment		59,639			88,776		5-10 years
Culinary equipment and library materials		14,499			17,822		10 years
Building and improvements		8,656			8,657		15-35 years
Vehicles		502			533		5 years
Construction in progress		67			2,196
		421,927			507,165
Less-accumulated depreciation		(381,415	)		(448,916	)
Total property and equipment, net	$	40,512		$	58,249

Depreciation expense for continuing operations for the years ended December 31, 2016, 2015 and 2014 was $21.9 million, $24.8 million and $52.6 million, respectively. Depreciation expense for discontinued operations, included in loss from discontinued operations, was zero for the years ended December 31, 2016 and 2015, respectively, and $2.0 million for the year ended December 31, 2014.

Property and equipment was affected by asset impairment charges of approximately $1.2 million, $41.7 million and $25.0 million for the years ended December 31, 2016, 2015 and 2014, respectively, primarily as a result of the reduction in carrying values for campuses that are being taught out, decisions made to exit certain leased facilities, and for certain long-lived assets which were expected to generate negative cash flows through the respective lease end dates and as such the carrying values were not recoverable. The fair value for these assets was determined based upon management’s assumptions regarding an estimated percentage of replacement value for similar assets and estimated salvage values. Because the determination of the estimated fair value of these assets requires significant estimation and assumptions, these fair value measurements are categorized as Level 3 per ASC Topic 820.

For assets with remaining fair value existing at our teach-out campuses, depreciation expense will be recorded over the shorter of the remaining useful life or the teach-out date for the campus.