Property and Equipment

6 Months Ended

Jun. 30, 2023

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, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
	(in thousands)
Housekeeping and dietary equipment	$	14,184	$	13,585
Computer hardware and software	6,418		6,086
Operating lease — right-of-use assets	25,838		34,445
Other1	1,076		1,055
Total property and equipment, at cost	47,516		55,171
Less accumulated depreciation	20,584		32,196
Total property and equipment, net	$	26,932	$	22,975

1.Includes furniture and fixtures, leasehold improvements and autos and trucks.

Depreciation expense for each of the three months ended June 30, 2023 and 2022 was $2.4 million. Depreciation expense for the six months ended June 30, 2023 and 2022 was $4.9 million and $5.3 million, respectively. Of the depreciation expense recorded for the three and six months ended June 30, 2023, $1.6 million and $2.8 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, 2022, $1.5 million and $3.1 million related to the depreciation of the Company’s ROU Assets, respectively.