Property and Equipment

6 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

Note 6—Property and Equipment

Property and equipment are recorded at cost. Depreciation is recorded over the estimated useful life of each class of depreciable asset, and is computed using the straight-line method. Leasehold improvements are amortized over the shorter of the estimated asset life or term of the lease. Repairs and maintenance costs are charged to expense as incurred.

The following table sets forth the amounts of property and equipment by each class of depreciable asset as of June 30, 2019 and December 31, 2018:


	June 30, 2019 ¹		December 31, 2018
	(in thousands)
Housekeeping and Dietary equipment	$	23,865	$	22,596
Computer hardware and software	12,484		12,114
Operating lease - right-of-use assets¹	19,016		—
Other²	1,679		920
Total property and equipment, at cost	57,044		35,630
Less accumulated depreciation	27,441		22,730
Total property and equipment, net	$	29,603	$	12,900

1.Upon the adoption of ASC 842 the Company recognized right-of-use assets pertaining to leases in Property and Equipment, net. Prior period amounts continue to be reported in accordance with previous guidance.

2.Includes furniture and fixtures, leasehold improvements and autos and trucks including auto leases.

Depreciation expense for the three months ended June 30, 2019 and 2018 was $2.3 million and $1.3 million, respectively. Depreciation expense for the six months ended June 30, 2019 and 2018 was $4.8 million and $2.6 million, respectively. Of the depreciation expense recorded for the three and six months ended June 30, 2019, $1.0 million and $2.2 million related to the depreciation of the Company's operating lease - right-of-use assets, respectively.