Property and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

6. Property and Equipment

Property and equipment consisted of the following at December 31 (in thousands):

	Estimated
	Useful Life	December 31, 2020		December 31, 2019
Land	N/A	$	57,052	$	2,900
Building and leasehold improvements	3 - 39 years		20,912		20,089
Production equipment	3 - 7 years		37,539		29,961
Computers, equipment and software	3 - 5 years		10,889		8,126
Furniture and office equipment	5 - 7 years		6,954		6,514
Vehicles	5 years		1,980		1,753
Website development costs	3 years		204		204
Capitalized internal-use software development costs	3 years		3,670		3,670
Construction-in-process	N/A		13,479		12,385
Total cost			152,679		85,602
Less: Accumulated depreciation			(47,185)		(41,832)
Property and equipment, net		$	105,494	$	43,770

In September 2020, we purchased a parcel of land located in Scottsdale, Arizona at auction from the Arizona State Land Department, on which we intend to construct our new manufacturing and office facility. The purchase price of the land was $49.1 million, plus selling fees, administrative fees, and certain other costs and expenses incurred by the Arizona State Land Department pursuant to the auction, for a total cost of approximately $50.6 million. We also capitalized legal and broker fees related to the purchase totaling approximately $1.3 million. Additionally, we capitalized approximately $2.2 million paid to the City of Scottsdale under a separate public infrastructure reimbursement development agreement; we are eligible for a refund of this and other infrastructure and development costs to be paid by Axon up to a total of approximately $9.4 million if certain milestones in the agreement are achieved.  

Depreciation and amortization expense related to property and equipment was $9.2 million, $7.9 million and $4.9 million for the years ended December 31, 2020, 2019 and 2018, respectively, of which $4.0 million, $3.5 million and $1.4 million was included in cost of sales for the respective years.