Property and Equipment

12 Months Ended

Dec. 31, 2024

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 December 31, 2024 and December 31, 2023:

	December 31, 2024		December 31, 2023
	(in thousands)
Housekeeping and Dietary equipment	$	17,052	$	15,764
Computer hardware and software	8,196		6,870
Operating lease — right-of-use assets	29,669		27,099
Other1	904		1,070
Total property and equipment, at cost	55,821		50,803
Less accumulated depreciation2	27,623		22,029
Total property and equipment, net	$	28,198	$	28,774

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

2.Includes $13.2 million and $9.4 million related to accumulated depreciation on Operating lease – right-of-use assets as of December 31, 2024 and 2023, respectively.

Depreciation expense for the years ended December 31, 2024, 2023 and 2022 was $11.9 million, $10.5 million, and $10.5 million, respectively. Of the depreciation expense recorded for the years ended December 31, 2024, 2023 and 2022, $7.8 million, $6.4 million and $6.1 million related to the depreciation of the Company’s operating lease - right-of-use assets (“ROU Assets”), respectively.

At December 31, 2024, 2023 and 2022, accrued purchases of property and equipment were $0.5 million, $0.7 million, and $0.3 million, respectively.