Property and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment

NOTE 8. PROPERTY AND EQUIPMENT

Property and equipment are recorded at cost and consisted of the following at December 31 (in thousands).

PROPERTY AND EQUIPMENT
(in thousands)
	2018			2017
Computer equipment	$	2,700		$	2,756
Technical equipment	3,868			3,348
Facilities	4,037			3,621
Instruments	5,318			1,400
Capital projects in progress	91			349
Total property and equipment	$	16,014		$	11,474
Accumulated depreciation	(8,711		)	(6,584		)
Net property and equipment	$	7,303		$	4,890

Depreciation expense (which includes amortization of capital lease assets) for the years ended December 31, 2018, 2017 and 2016 was $2.5 million, $2.2 million and $2.3 million, respectively.

During the year ended December 31, 2018, $1.9 million of systems in the field were reclassified out of inventory and into property and equipment, which included $0.1 million of systems in the field as a component of inventory at December 31, 2017. These transfers were the result of a change in the Company’s principal model for instrument acquisition from outright sales of systems to placing systems with customers and recovering that cost through the sale of test kits pursuant to reagent rental agreements. The reclassification from inventory to property and equipment did not have an effect on prior period net income, and the systems will be depreciated going forward.