Property and Equipment

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 and December 31, 2018:

	March 31, 2019 1		December 31, 2018
	(in thousands)
Housekeeping and Dietary equipment	$	23,251	$	22,596
Computer hardware and software	12,413		12,114
Operating lease - right-of-use assets	18,137		—
Other 2	1,370		920
Total property and equipment, at cost	55,171		35,630
Less accumulated depreciation	25,094		22,730
Total property and equipment, net	$	30,077	$	12,900

1.Upon the adoption of ASC 842 the Company recognized right of use assets pertaining to leases in Property and Equipment, net. Prior period amounts continue to be reported in accordance with previous guidance.

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

Depreciation expense for the three months ended March 31, 2019 and 2018 was $2.4 million and $1.3 million, respectively. Of the depreciation expense recorded for the three months ended March 31, 2019, $1.2 million related to the depreciation of the Company's operating lease - right-of-use assets.