Property and Equipment

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

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 March 31, 2020 and December 31, 2019:

	March 31, 2020		December 31, 2019
	(in thousands)
Housekeeping and Dietary equipment	$	23,070	$	25,219
Computer hardware and software	9,384		12,769
Operating lease — right-of-use assets1	23,221		21,176
Other2	1,668		1,698
Total property and equipment, at cost	57,343		60,862
Less accumulated depreciation	28,333		32,042
Total property and equipment, net	$	29,010	$	28,820

1.Upon the adoption of ASC 842 the Company recognized right-of-use assets pertaining to leases in Property and Equipment, net.

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

Depreciation expense for the three months ended March 31, 2020 and 2019 was $2.5 million and $2.4 million, respectively. Of the depreciation expense recorded for the three months ended March 31, 2020 and 2019, $1.4 million and $1.2 million related to the depreciation of the Company’s operating lease - right-of-use assets ("ROU Assets"), respectively.