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Property and Equipment, net
 3 Months Ended
Apr. 02, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment, net
8. Property and Equipment, net
Property and equipment, net, consists of the following (in thousands):
April 2,
2022		January 1,
2022
Building and building improvements$142,303 $142,132 
Machinery, equipment and tooling107,122 103,451 
Land57,368 57,027 
Computer equipment and software33,517 32,450 
Transportation, vehicles and other33,053 33,082 
Leasehold improvements22,405 21,894 
Furniture and office equipment14,276 14,200 
Operating lease assets(1)
9,930 — 
Demonstration units869 949 
Construction-in-progress (CIP)42,534 25,109 
     Total property and equipment463,377 430,294 
Accumulated depreciation(163,833)(157,501)
     Property and equipment, net$299,544 $272,793 
______________
(1)     Effective January 2, 2022, the Company adopted ASU 2021-05, resulting in the Company recording these operating lease assets within property, plant, and equipment.
For the three months ended April 2, 2022 and April 3, 2021, depreciation expense of property and equipment was $6.5 million and $6.0 million, respectively. For the three months ended April 2, 2022 and April 3, 2021, depreciation expense of operating lease assets was $0.2 million and $0.0 million, respectively.
On February 14, 2022, our wholly owned subsidiary, Masimo Canada ULC, entered into a Purchase and Sale Agreement (Purchase Agreement) with Keltic (Prior) Development Limited Partnership for the purchase of a property in Vancouver, British Columbia, Canada for a purchase price of CAD 123.0 million (plus GST) (Purchase Price), subject to certain adjustments. We have paid CAD 21.0 million as a deposit for the purchase. The balance of the Purchase Price will be due and payable upon the closing of the transaction, which is currently expected to occur during the second half of 2024.
The balance in CIP at April 2, 2022 relates primarily to costs associated with the Vancouver facility project (as mentioned above) and capitalized implementation costs related to a new enterprise resource planning software system, the underlying assets for which have not been completed or placed into service.
The balance in CIP at January 1, 2022 relates 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.