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Property and Equipment, net
6 Months Ended
Jul. 03, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment, net
8. Property and Equipment, net
Property and equipment, net, consists of the following (in thousands):
July 3,
2021
January 2,
2021
Building and building improvements$141,856 $122,310 
Machinery, equipment and tooling100,682 90,843 
Land57,255 57,151 
Transportation, vehicles and other33,111 33,175 
Computer equipment and software31,510 24,693 
Leasehold improvements20,476 19,295 
Furniture and office equipment14,103 13,567 
Demonstration units1,046 1,024 
Construction-in-progress (CIP)19,443 44,589 
     Total property and equipment419,482 406,647 
Accumulated depreciation(144,759)(134,136)
     Property and equipment, net$274,723 $272,511 
For the three months ended July 3, 2021 and June 27, 2020, depreciation expense of property and equipment was $6.4 million and $5.3 million, respectively. For the six months ended July 3, 2021 and June 27, 2020, depreciation expense of property and equipment was $12.3 million and $10.2 million, respectively.
The balance in CIP at July 3, 2021 related primarily to the capitalized implementation costs related to a new enterprise resource planning software system and costs related to equipment and other facility improvements, the underlying assets for which have not been completed or placed into service. The decrease in CIP balance from January 2, 2021 primarily relates to the Company’s European headquarters building in Switzerland being placed into service along with a phase of the new enterprise resource planning software system for certain subsidiaries being placed into service.
The balance in CIP at January 2, 2021 related primarily to acquisition and improvement costs for a portion of the Company’s European headquarters building in Switzerland, capitalized implementation costs related to a new enterprise resource planning software system and costs related to manufacturing equipment and other facility improvements, the underlying assets for which had not been placed into service.