Property And Equipment | Note 5 – Property and Equipment Operating Property, net As of March 31, 2016 and December 31, 2015 , property associated with our operating acti vities is summarized as follows: March 31, December 31, (Dollars in thousands) 2016 2015 Land $ 71,775 $ 70,063 Building and improvements 131,006 126,622 Leasehold improvements 47,137 46,874 Fixtures and equipment 114,870 112,423 Construction-in-progress 11,498 7,825 Total cost 376,286 363,807 Less: accumulated depreciation (159,211) (153,509) Operating property, net $ 217,075 $ 210,298 Depreciation expense for operating property was $3.5 million for both three months ended March 31, 2016 and March 31, 2015 . Depreciation is unchanged over the period due to the increase in depreciation caused by the upgrade of our Carmel Mountain site and the opening of our LynnMall site being offset by foreign currency movements in Australia and New Zealand. Burwood, Australia On May 12, 2014, we entered into a contract to sell our undeveloped 50.6 acre parcel in Burwood, Victoria, Australia, to Australand Holdings Limited (now known as Frasers Property Australia) for a purchase price of $50.8 million ( AU$65.0 million). We received $5.9 million ( AU$6.5 million) on May 23, 2014. The remaining purchase price of $44.9 million ( AU$58.5 million) is due on December 31, 2017. Our book value in the property is $40.0 million ( AU$52.1 million) and $38.0 ( AU$52.1 million) as of March 31, 2016 and December 31, 2015, respectively. While the transaction was treated as a sale for tax purposes in 2014, it does not qualify as a sale under US GAAP until the receipt of the payment of the balance of the purchase price due on December 31, 2017 (or earlier depending upon whether any prepay ment obligation is triggered). The asset is classified as long-term land held for sale on the consolidated balance sheets as of March 31, 2016 and December 31, 2015. Doheny Condo, Los Angeles On February 25, 2015, we sold our Los Angeles Condo for $3.0 million resulting in a $2.8 million gain on sale. Taupo, New Zealand On April 1, 2015, we entered into two definitive purchase and sale agreements to sell our properties at Taupo, New Zealand for a combined sales price of $2.3 million (NZ $3.4 million). The first agreement related to a property with a sales price of $1.6 million (NZ $2.2 million) and a book value of $1.3 million (NZ $1.8 million), which closed on April 30, 2015 when we received the sales price in full. The other agreement related to a property with a sales price of $831,000 ( NZ$1.2 million) and a book value of $426,000 (NZ $615,000 ) which was completed and for which we received cash settlement representing full sales price on March 31, 2016. The first transaction qualified as a sale under both U.S. GAAP and tax purposes during the year-ended December 31, 2015. The second transaction was recorded as a sale during the three months ended March 31, 2016. Cannon Park, Queensland , Australia On December 23, 2015, we completed a 100% acquisition of two adjoining ETCs in Townsville, Queensland, Australia for a total of $24.3 million ( AU$33.6 million) in cash. The total gross leasable area of the two adjoining properties, the Cannon Park City Centre and the Cannon Park Discount Centre, is 133,000 square feet. The Cannon Park City Centre is anchored by Reading Cinemas, which is operated by Reading International’s 75% owned subsidiary, Australia Country Cinemas, and has three mini-major tenants and ten specialty family oriented restaurant tenants. The Cannon Park Discount Centre is anchored by Kingpin Bowling and supported by four other retailers. The properties are located approximately 6 miles from downtown Townsville, the second largest city in Queensland, Australia. This acquisition is consistent with our business plan to own, where practical, the land underlying our entertainment assets. The acquired assets consist primarily of the land and buildings, which is approximately 98% leased to existing tenants. Tenancies range from having 9 months to 8 years left to run on their leases. The total purchase price was allocated to the identifiable assets acquired based on our preliminary estimates of their fair values on the acquisition date. There were no liabilities assumed. As of March 31, 2016, the Company is still finalizing its allocation and this may result in potential adjustments within the 1 -year measurement period from acquisition date. The determination of the fair values of the acquired assets (and the related determination of their estimated lives) requires significant judgment. We did not identify any intangible assets or liabilities (above and below-market leases) at the date of acquisition. There was no goodwill recorded , as the purchase price did not exceed the fair value estimates of the net acquired assets. Our preliminary purchase price allocation is as follows: (Dollars in thousands) US Dollars AU dollars Prepaid assets $ 28 $ 38 Operating property: Land 7,609 10,500 Building 16,712 23,060 Total purchase price $ 24,349 $ 33,598 Investment and Development Property As of March 31, 2016 and December 31, 2015 , our investment and devel opment property is summarized below : March 31, December 31, (Dollars in thousands) 2016 2015 Land $ 21,709 $ 21,434 Construction-in-progress 1,617 1,568 Investment and development property $ 23,326 $ 23,002 |