Fixed Assets

Fixed assets as of December 31, 2015 and 2014 are shown at cost, less accumulated depreciation and amortization and are summarized below:



	December 31,
	2015			2014
Leasehold improvements	$	498,394		$	491,401
Club equipment	105,998			105,486
Furniture, fixtures and computer equipment	69,383			65,373
Computer software	24,047			22,071
Building and improvements	—			4,995
Land	—			986
Construction in progress	4,882			12,740
	702,704			703,052
Less: Accumulated depreciation and amortization	(507,363		)	(469,408		)
	$	195,341		$	233,644

Depreciation and leasehold amortization expense for the years ended December 31, 2015, 2014 and 2013, was $47,664, $46,794 and $48,785, respectively.

Fixed assets are evaluated for impairment periodically whenever events or changes in circumstances indicate that related carrying amounts may not be recoverable from undiscounted cash flows in accordance with FASB guidance. The Company’s long-lived assets and liabilities are grouped at the individual club level which is the lowest level for which there are identifiable cash flows. To the extent that estimated future undiscounted net cash flows attributable to the assets are less than the carrying amount, an impairment charge equal to the difference between the carrying value of such asset and their fair values is recognized.

In the year ended December 31, 2015, the Company tested its underperforming clubs and recorded impairment charges of $14,571 on leasehold improvements and furniture and fixtures at eighteen clubs that experienced decreased profitability and sales levels below expectations during this period. These charges were recorded within the Clubs segment. The remaining clubs tested that did not have impairment charges had an aggregate of $26,593 of net leasehold improvements and furniture and fixtures remaining as of December 31, 2015.

In the year ended December 31, 2014, the Company recorded impairment charges totaling $4,569 related to nine underperforming clubs. In the year ended December 31, 2013, the Company recorded impairment charges totaling $714 related to three underperforming clubs.

The following table presents the long-lived assets measured at fair value on a nonrecurring basis for the period ended December 31, 2015:



			Basis of Fair Value Measurements
	Fair Value of Assets (Liabilities)		Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2015	$	14,571	$	—	$	—	$	14,571
December 31, 2014	$	4,569	$	—	$	—	$	4,569