PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2012

3. PROPERTY AND EQUIPMENT

Property and equipment and related accumulated depreciation and amortization consisted of the following:

	September 30,			December 31,
	2012			2011
	(In thousands)
Land and land improvements	$	38,546			$	32,680
Buildings and improvements		539,969				478,596
Furniture and equipment		40,458				38,715
Leasehold improvements		11,034				11,009
Construction in progress		5,458				4,723
		635,465				565,723
Less accumulated depreciation and amortization		(149,080	)			(134,990	)
	$	486,385			$	430,733

Long-lived assets with definite useful lives are depreciated on a straight-line basis over their estimated useful lives (or, in certain cases, the shorter of their useful lives or the expected lease term) and are tested for impairment whenever indicators of impairment arise.

During the nine months ended September 30, 2012, there were indicators of impairment on certain long-lived assets. ALC compared the estimated fair value of assets to their carrying value and recorded an impairment charge for the excess carrying value over their fair value. A non-cash charge of $3.5 million was recorded in ALC's operating results and is reflected as an impairment in the accompanying condensed consolidated statements of operations. These charges are reflected as a decrease to the gross carrying value of the asset. The estimated fair market value was determined by independent third party appraisers.

On June 15, 2012, ALC completed the acquisition of 12 properties which it previously leased. The initial fair market valuation resulted in an increase of $5.7 million to land and $57.1 million to buildings and improvements. ALC also reclassified $3.1 million of unamortized leasehold improvements to land improvements, building and building improvements.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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