Fixed Assets

Fixed assets as of December 31, 2016 and 2015 are shown at cost, less accumulated depreciation and amortization and are summarized below:



	December 31,
	2016			2015
Leasehold improvements	$	495,515		$	498,394
Club equipment	107,905			105,998
Furniture, fixtures and computer equipment	71,222			69,383
Computer software	25,813			24,047
Construction in progress	3,617			4,882
	704,072			702,704
Less: Accumulated depreciation and amortization	(533,492		)	(507,363		)
	$	170,580		$	195,341

Depreciation and leasehold amortization expense for the years ended December 31, 2016, 2015 and 2014, was $43,691, $47,664 and $46,794, 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, 2016, the Company tested its underperforming clubs and recorded impairment charges of $742 on leasehold improvements and furniture and fixtures at clubs that experienced decreased profitability and sales levels below expectations during this period. The Company will continue to monitor the results and changes in expectations of its clubs closely during 2017 to determine if additional fixed asset impairment charges will be necessary. In the years ended December 31, 2015 and December 31, 2014, the Company recorded impairment charges of $14,571 and $4,569, respectively, related to underperforming clubs.

The following table presents the long-lived assets measured at fair value on a nonrecurring basis for the period ended December 31, 2016:



			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, 2016	$	742	$	—	$	—	$	742
December 31, 2015	$	14,571	$	—	$	—	$	14,571