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Property and Equipment, net
 9 Months Ended
Oct. 01, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment, net
8. Property and Equipment, net
Property and equipment, net, consists of the following:
(in millions)October 1,
2022		January 1,
2022
Building and building improvements$150.0 $142.1 
Machinery, equipment and tooling140.0 103.5 
Land64.0 57.0 
Computer equipment and software41.6 32.5 
Transportation, vehicles and other32.7 33.1 
Leasehold improvements30.9 21.9 
Operating lease assets(1)
22.8 — 
Furniture and office equipment17.8 14.2 
Demonstration units10.4 0.9 
Construction-in-progress (CIP)45.9 25.1 
     Total property and equipment556.1 430.3 
Accumulated depreciation(183.9)(157.5)
     Property and equipment, net$372.2 $272.8 
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(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.
A significant portion of the increase in property and equipment was attributable to the Sound United acquisition. See Note 18, “Business Combinations”, for further details.
For the three months ended October 1, 2022 and October 2, 2021, depreciation expense of property and equipment was $12.6 million and $6.5 million, respectively. For the nine months ended October 1, 2022 and October 2, 2021, depreciation expense of property and equipment was $31.1 million and $18.8 million, respectively.
For the three months ended October 1, 2022 and October 2, 2021, depreciation expense of operating lease assets was $0.9 million and $0.0 million, respectively. For the nine months ended October 1, 2022 and October 2, 2021, depreciation expense of operating lease assets was $1.0 million and $0.0 million, respectively.
The balance in CIP at October 1, 2022 and January 1, 2022 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 at the Company’s corporate headquarters, as well as at a new research and development facility, the underlying assets for which have not been completed or placed into service.
On February 14, 2022, the Company’s wholly owned subsidiary, Masimo Canada ULC, entered into a Purchase and Sale Agreement (Purchase Agreement) with Keltic (Prior) Development Limited Partnership (Vendor) 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. The Company has paid CAD 21.0 million as a deposit towards 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.