Property and Equipment

Property and equipment consists of the following at December 31, 2018 and 2017:



(in thousands)	2018			2017
Land	$	48,027		$	51,009
Buildings and improvements	106,072			104,752
Leasehold improvements	22,758			19,750
Furniture, fixtures and equipment	186,017			161,014
Vehicles	134,470			120,855
Construction-in-progress	11,695			14,519
	509,039			471,899
Less: Accumulated depreciation	(214,712		)	(176,079		)
	$	294,327		$	295,820

Total depreciation expense for the years ended December 31, 2018, 2017 and 2016 was $50.4 million, $53.2 million and $48.0 million, respectively, including amortization expense related to capital leases. These amounts include depreciation expense of $10.7 million, $10.2 million and $9.5 million included in cost of goods sold in 2018, 2017 and 2016, respectively.

Impairment of BMHC ERP System

During 2013, BMHC selected a new third-party software vendor for its planned Enterprise Resource Planning (“New ERP”) system and began incurring costs related to design, development and implementation of the New ERP. BMHC also began paying an annual licensing fee. During March 2016, the Company decided to integrate all operations under the Enterprise Resource Planning system utilized by Legacy SBS (the “Legacy SBS ERP system”) and to discontinue the use of the New ERP. In connection with this decision, the Company recorded asset impairment charges of approximately $11.9 million in its consolidated statement of operations for the year ended December 31, 2016 related to capitalized software development costs for New ERP functionality that the Company had intended to implement in future periods. These costs had previously been recorded as construction-in-progress within property and equipment on the consolidated balance sheets.

During the year ended December 31, 2017, the Company determined that it had ceased receiving economic benefit from certain non-cancellable license and service contracts related to the New ERP. In accordance with ASC 420, Exit or Disposal Cost Obligations, as of the cease use date, the Company recognized approximately $2.8 million of expense within Merger and integration costs in its consolidated statements of operations for the year ended December 31, 2017, consisting of $2.1 million for contractual payments due subsequent to the cease use date, all of which have been paid as of December 31, 2017, and the acceleration of expense recognition of unamortized prepaid costs of $0.7 million.