Property, Plant and Equipment and Leasehold Intangibles, Net

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment and Leasehold Intangibles, Net

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

As of June 30, 2023 and December 31, 2022, net property, plant and equipment and leasehold intangibles, which include assets under financing leases, consisted of the following.

(in thousands)	June 30, 2023		December 31, 2022
Land	$	504,178	$	506,968
Buildings and improvements	5,329,627		5,323,736
Furniture and equipment	1,085,929		1,055,304
Resident and leasehold operating intangibles	284,122		286,122
Construction in progress	59,514		41,778
Assets under financing leases and leasehold improvements	1,066,547		1,375,521
Property, plant and equipment and leasehold intangibles	8,329,917		8,589,429
Accumulated depreciation and amortization	(3,901,679)		(4,053,727)
Property, plant and equipment and leasehold intangibles, net	$	4,428,238	$	4,535,702

Assets under financing leases and leasehold improvements includes $31.0 million and $98.4 million of financing lease right-of-use assets, net of accumulated amortization, as of June 30, 2023 and December 31, 2022, respectively. Refer to Note 7 for further information on the Company's financing leases.Long-lived assets with definite useful lives are depreciated or amortized on a straight-line basis over their estimated useful lives (or, in certain cases, the shorter of their estimated useful lives or the lease term) and are tested for impairment whenever indicators of impairment arise. The Company recognized depreciation and amortization expense on its property, plant and equipment and leasehold intangibles of $84.4 million and $86.6 million for the three months ended June 30, 2023 and 2022, respectively, and $169.4 million and $172.3 million for the six months ended June 30, 2023 and 2022, respectively. The Company recognized $0.5 million for the three and six months ended June 30, 2023 of non-cash impairment charges in its operating results for its property, plant and equipment and leasehold intangibles assets, primarily due to property damage sustained at certain communities. The Company recognized $1.6 million and $2.1 million for the three and six months ended June 30, 2022, respectively, of non-cash impairment charges in its operating results for its property, plant and equipment and leasehold intangibles assets, primarily due to property damage sustained at certain communities and decreased occupancy and future cash flow estimates at certain communities as a result of the continued impacts of the COVID-19 pandemic.