Components of property, plant and equipment, net were as follows:
| | | | | | | | | | | |
| December 31, |
| (in thousands) | 2024 | | 2023 |
| Land | $ | 16,187 | | | $ | 16,916 | |
| Buildings and improvements | 63,935 | | | 50,376 | |
| Machinery and equipment | 55,890 | | | 48,844 | |
| Capitalized software | 12,295 | | | 9,148 | |
| Furniture and fixtures | 13,251 | | | 11,022 | |
| Vehicles | 5,716 | | | 1,738 | |
Construction in progress(1) | 6,284 | | | 6,025 | |
| Total | 173,558 | | | 144,069 | |
| Accumulated depreciation and amortization | (48,034) | | | (30,258) | |
| Property, plant and equipment, net | $ | 125,524 | | | $ | 113,811 | |
(1) Construction in progress primarily relates to upgrades to certain of the Company’s information technology systems and distribution facilities that we expect to place in service in the next 12 months.
Depreciation expense for property, plant and equipment and amortization expense for capitalized software, which are included in Selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss), were as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| (in thousands) | 2024 | | 2023 | | 2022 |
| Depreciation expense for property, plant and equipment | $ | 16,125 | | | $ | 13,052 | | | $ | 6,534 | |
| Amortization expense for capitalized software | $ | 3,287 | | | $ | 2,642 | | | $ | 1,583 | |
Rental equipment, net consisted of the following:
| | | | | | | | | | | |
| December 31, |
| (in thousands) | 2024 | | 2023 |
| Rental equipment | $ | 64,160 | | | $ | 52,387 | |
| Accumulated depreciation | (24,784) | | | (27,812) | |
| Rental equipment, net | $ | 39,376 | | | $ | 24,575 | |
Depreciation expense for rental equipment, which is included in Cost of goods sold in the Consolidated Statements of Operations and Comprehensive Income (Loss), was as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| (in thousands) | 2024 | | 2023 | | 2022 |
| Depreciation expense for rental equipment | $ | 7,481 | | | $ | 7,631 | | | $ | 7,972 | |
| | | | | |
About PP&E Disclosures
The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.
Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.