Property and Equipment

3 Months Ended

Mar. 31, 2021

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, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020
	(in thousands)
Housekeeping and dietary equipment	$	13,800	$	13,862
Computer hardware and software	5,874		6,015
Operating lease — right-of-use assets	29,229		26,074
Other1	1,581		1,581
Total property and equipment, at cost	50,484		47,532
Less accumulated depreciation	22,762		20,971
Total property and equipment, net	$	27,722	$	26,561

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

Depreciation expense for the three months ended March 31, 2021 and 2020 was $2.6 million and $2.5 million, respectively. Of the depreciation expense recorded for the three months ended March 31, 2021 and 2020, $1.5 million and $1.4 million related to the depreciation of the Company’s operating lease - right-of-use assets ("ROU Assets"), respectively.