Quarterly report pursuant to Section 13 or 15(d)

Fixed Assets and Leasehold Improvements, Net

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Fixed Assets and Leasehold Improvements, Net
 9 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
Fixed Assets and Leasehold Improvements, Net
12. Fixed Assets and Leasehold Improvements, Net

Fixed assets and leasehold improvements, net, consisted of the following (in thousands):
September 30, 2022 December 31, 2021 Estimated Useful Life
Computer hardware and software $ 23,482  $ 28,726 
3 - 5 years
Furniture and fixtures 3,587  4,450 
5 - 7 years
Leasehold improvements 3,324  4,217 
*
Buildings and land 164  164 
10 years
Vehicles 37  48 
10 years
Total fixed assets 30,594  37,605 
Less: Accumulated depreciation and amortization (10,766) (8,349)
Total fixed assets and leasehold improvements, net $ 19,828  $ 29,256 
*Shorter of life of lease or useful life of assets.

The depreciation and amortization expense was $3.6 million and $9.4 million for the three and nine months ended September 30, 2022, respectively. The depreciation and amortization expense was $3.0 million and $6.0 million for the Successor three and six months ended September 30, 2021, respectively, and $2.9 million for the Predecessor three months ended March 31, 2021. Depreciation expense is recorded in general and administrative expenses in the Condensed Consolidated Statements of Operations.
The Company evaluates the carrying value of long-lived assets, including the fixed assets and leasehold improvements when indicators of impairment exist in accordance with ASC 360, Property, Plant, and Equipment (ASC 360). The carrying value of a long-lived asset is considered impaired when the estimated separately identifiable, undiscounted cash flows expected to result from use and eventual disposal from such an asset are less than the carrying value of the asset. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. During the first half of 2022, the Company observed that inflationary measures began to rise, reducing the demand for mortgage products from its Mortgage Originations segment and responded by implementing cost cutting measures. As the length and magnitude of the downturn in mortgage demand continued into the third quarter, including increasingly compressed margins and longer expected duration of such market pressures, the Mortgage Origination reporting unit's current and expected future operating losses indicated that the fixed assets and leasehold improvements included in the reporting unit may not be recoverable and an impairment analysis was performed as of September 30, 2022. Based on the analysis, the Company wrote off certain assets and recognized an impairment charge of $8.1 million for the fixed assets and leasehold improvements, which is recorded in impairment of intangibles and other assets in the Condensed Consolidated Statements of Operations. There was no impairment charge in any other periods presented.