Property and Equipment

6 Months Ended

Jun. 30, 2022

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 June 30, 2022 and December 31, 2021:

	June 30, 2022		December 31, 2021
	(in thousands)
Housekeeping and Dietary equipment	$	13,515	$	13,468
Computer hardware and software	6,020		5,880
Operating lease — right-of-use assets	34,042		33,217
Other1	1,674		1,736
Total property and equipment, at cost	55,251		54,301
Less accumulated depreciation	29,619		26,199
Total property and equipment, net	$	25,632	$	28,102

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

Depreciation expense for the three months ended June 30, 2022 and 2021 was $2.4 million and $2.6 million, respectively. Depreciation expense for the six months ended June 30, 2022 and 2021 was $5.3 million and $5.2 million, respectively. Of the depreciation expense recorded for the three and six months ended June 30, 2022, $1.5 million and $3.1 million related to the depreciation of the Company’s operating lease - right-of-use assets (“ROU Assets”), respectively. Of the depreciation expense recorded for the three and six months ended June 30, 2021, $1.6 million and $3.1 million related to the depreciation of the Company’s ROU Assets, respectively.