Equipment and Leasehold Improvements

Equipment and leasehold improvements as of December 29, 2017 and December 30, 2016 consisted of the following:



	Useful Lives	December 29, 2017			December 30, 2016
Land	Indefinite	$	1,170		$	1,170
Buildings	20 years	1,292			1,292
Machinery and equipment	5-10 years	16,183			13,404
Computers, data processing and other equipment	3-7 years	9,924			9,367
Leasehold improvements	7-22 years	53,653			47,971
Furniture and fixtures	7 years	3,100			3,011
Vehicles	5-7 years	2,570			2,445
Other	7 years	95			95
Construction-in-process		15,030			11,359
		103,017			90,114
Less: accumulated depreciation and amortization		(34,639		)	(27,931		)
Equipment and leasehold improvements, net		$	68,378		$	62,183

Construction-in-process at December 29, 2017 consists primarily of the implementation of the Company’s Enterprise Resource Planning (“ERP”) system and the build out of the Company's distribution center in Union City, CA. The build out of the Company's Union City distribution center is expected to be completed during the first quarter of fiscal 2018 and the roll-out of the ERP system is expected to continue through 2019. The Company expects the cost to complete these projects to be approximately $3,200. Construction-in-process at December 30, 2016 related primarily to the implementation of the Company’s ERP system.

The Company had $530 and $506 of equipment and vehicles financed by capital leases at December 29, 2017 and December 30, 2016, respectively. The Company recorded depreciation of $64, $71 and $96 on these assets for the fiscal years ended December 29, 2017, December 30, 2016 and December 25, 2015, respectively.

Depreciation expense, excluding capital leases, was $6,644, $5,679 and $4,536 for the fiscal years ended December 29, 2017, December 30, 2016 and December 25, 2015, respectively.

Amortization expense on software was $1,808, $1,332 and $1,328 for the fiscal years ended December 29, 2017, December 30, 2016 and December 25, 2015, respectively.

During the years ended December 29, 2017, December 30, 2016 and December 25, 2015, the Company incurred interest expense of $22,709, $41,632 and $12,984, respectively. The Company capitalized interest expense of $0, $0 and $739, respectively, during the same periods. Capitalized interest is related to the build outs of the new distribution facilities in Bronx, NY and Las Vegas, NV.

On September 26, 2016, the Company sold a parcel of land it owned in Las Vegas, for total cash consideration of $550. The Company recognized a pre-tax gain of $113 on the sale. On June 30, 2015, the Company closed on a sale-leaseback transaction of its new Las Vegas, NV distribution facility. The property was sold for $14,645, which approximated its cost. The related ongoing lease will be accounted for as an operating lease by the Company.