PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2011

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

3.  PROPERTY AND EQUIPMENT

The following table summarizes property and equipment by major classification as of June 30, 2011 and December 31, 2010.

($ thousands)	June 30, 2011			December 31, 2010
Machinery and equipment(1)	$	77,094		$	70,962
Leasehold improvements	57,624			49,519
Furniture and fixtures and other	16,129			16,587
Construction-in-progress	6,094			7,902
Property and equipment, gross	156,941			144,970
Accumulated depreciation(2)	(87,604		)	(74,956		)
Property and equipment, net	$	69,337		$	70,014

(1) Includes $0.4 million of equipment held under capital leases and classified as equipment as of June 30, 2011 and December 31, 2010.

(2) Includes $0.3 million and $0.2 million of accumulated depreciation related to equipment held under capital leases as of June 30, 2011 and December 31 2010, respectively.

During the three and six months ended June 30, 2011, we recorded $7.3 million and $14.9 million, respectively, in depreciation expense of which $3.3 million and $7.1 million, respectively, was recorded in cost of sales and the balance was recorded in selling, general and administrative expenses in the unaudited condensed consolidated statements of income. During the three and six months ended June 30, 2010, we recorded $7.0 million and $13.9 million, respectively, in depreciation expense of which $3.5 million and $7.0 million, respectively, was recorded in cost of sales and the balance was recorded in selling, general and administrative expenses in the unaudited condensed consolidated statements of income.