3. PROPERTY AND EQUIPMENT:  $^{ }$4. GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS: Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed under the straight-line  method over the following estimated useful lives:  Capital leased assets are related to building, tower and equipment leases. Depreciation related to capital leases is included in  depreciation expense in the consolidated statements of operations. We recorded capital lease depreciation expense of $4.0  million, $4.7 million and $5.3 million for the years ended December 31, 2010, 2009 and 2008, respectively. Goodwill and broadcast licenses are required to be tested for impairment at least annually. We test our broadcast licenses and  goodwill annually during the fourth quarter each year and between annual evaluations if events occur or circumstances change  that indicate that the fair value of our reporting units or licenses may be below their carrying amount. We did not have any  indicators of impairment in the first, second or third quarters of 2010 and therefore did not perform impairment tests for those  periods. We performed our annual impairment test in the fourth quarter of 2010. When evaluating whether goodwill is impaired, we aggregate our stations by market for purposes of our goodwill impairment  testing. We believe that our markets are most representative of our broadcast reporting units because we view, manage and  evaluate our stations on a market basis. Furthermore, in our markets operated as duopolies, certain costs of operating the stations  are shared including the use of buildings and equipment, the sales force and administrative personnel. We then compare the fair  value of the reporting unit to which the goodwill is assigned to the reporting unit’s carrying amount, including goodwill. We  estimate the fair market value of our reporting units using a combination of quoted market prices, observed earnings/cash flow  multiples paid for comparable television stations, and discounted cash flow models. Our discounted cash flow model is based on  our judgment of future market conditions within each designated market area, as well as discount rates that would be used by  market participants in an arms-length transaction. If the carrying amount of a reporting unit exceeds its fair value, then the  amount of the impairment loss must be measured. The impairment loss is calculated by comparing the implied fair value of  reporting unit goodwill to its carrying amount. In calculating the implied fair value of reporting unit goodwill, the fair value of the  reporting unit is allocated to all of the other assets and liabilities of that unit based on their fair values. The excess of the fair value  of a reporting unit over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. An impairment  loss is recognized to the extent that the carrying amount of goodwill exceeds its implied fair value. 2010 Annual Report    41  Property and equipment consisted of the following as of December 31, 2010 and 2009 (in thousands):  Buildings and improvements  10 - 30 years  Station equipment  5 - 10 years  Office furniture and equipment  5 - 10 years  Leasehold improvements  Lesser of 10 - 30 years or lease term  Automotive equipment  3 - 5 years  Property and equipment under capital leases  Lease term 2010 2009 Land and improvements  $ 20,183  $ 20,060  Real estate held for development and sale  54,474  52,049 Buildings and improvements  93,514  91,396  Station equipment  341,022  345,809 Office furniture and equipment  44,735  44,120  Leasehold improvements  15,336  15,286 Automotive equipment  12,040  12,006  Capital leased assets  79,259  80,483 Construction in progress  3,005  1,368  663,568  662,577 Less: accumulated depreciation  (391,337)  (366,350)  $ 272,231  $  296,227