Property And Equipment

12 Months Ended

Dec. 31, 2017

Note 5 Property and Equipment

Property and equipment at December 31, 2017 and 2016 are summarized as follows:


(in thousands)	2017		2016		Useful Life (in years)
Land	$	903	$	903	N/A
Building		11,276		11,122	25-30
Machinery and equipment		134,666		108,826	2-7
Capitalized software		8,834		8,651	3-5
Office furniture and equipment		4,677		3,130	1-5
Leasehold improvements		29,503		24,423	Life of lease (a)
Construction in progress		13,527		7,760	N/A
Total property and equipment		203,386		164,815
Less: Accumulated depreciation and amortization		(105,865)		(84,837)
Total property and equipment, net	$	97,521	$	79,978

^(a)

Leasehold improvements are amortized on a straight-line basis over the shorter of (i) their estimated useful lives and (ii) the estimated or contractual life of the related lease.

The Company includes all depreciation from assets attributable to the generation of revenue in the Cost of Sales line item in the statement of operations. Depreciation related to assets that are not attributable to the generation of revenue are included in the Research and Development and Selling and General Administrative line items in the statement of operations. Depreciation expense on property and equipment for the years ended 2017, 2016 and 2015 was $25,561, $24,331 and $20,979, respectively.

For the years ended December 31, 2017, 2016 and 2015, the Company recognized impairment charges of $636, $7,408, and $614, respectively, on property and equipment, net. The charges taken in 2016 were in connection with our updated strategy and project reprioritization.