Property and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

NOTE 8. PROPERTY AND EQUIPMENT

Property and equipment are recorded at cost and consisted of the following at December 31 (in thousands).



PROPERTY AND EQUIPMENT
(in thousands)
	2019			2018
Computer equipment	$	2,477		$	2,700
Technical equipment	3,681			3,868
Facilities	3,883			4,037
Instruments	7,491			5,318
Capital projects in progress	238			91
Total property and equipment	$	17,770		$	16,014
Accumulated depreciation	(9,865		)	(8,711		)
Net property and equipment	$	7,905		$	7,303

Depreciation expense for the years ended December 31, 2019, 2018 and 2017 was $2.3 million, $2.5 million and $2.2 million, respectively.

Gross assets where the Company is the lessor under operating leases is $4.6 million at December 31, 2019. These gross assets are a component of instruments in the above table. The underlying accumulated depreciation for these instruments is $0.8 million at December 31, 2019.

During the year ended December 31, 2018, $1.9 million of instruments in the field were reclassified out of inventory and into property and equipment, which included $0.1 million of instruments in the field as a component of inventory at December 31, 2017. These transfers were the result of a change in the Company’s principal acquisition model of outright sales of instruments, to placing instruments with customers and recovering that cost through the sale of test kits pursuant to reagent rental agreements. The reclassification from inventory to property and equipment did not have an effect on prior period net income, and these instruments started being depreciated on the day they were reclassified.