Property and Equipment, net

6 Months Ended

Jun. 29, 2024

Property, Plant and Equipment [Abstract]

8. Property and Equipment, net

Property and equipment, net, consists of the following:


(in millions)	June 29, 2024		December 30, 2023
Machinery, equipment and tooling	$	178.6	$	169.7
Building and building improvements	150.1		151.0
Operating lease assets	120.2		92.2
Land(1)	54.2		66.2
Computer equipment and software	45.4		45.5
Leasehold improvements	40.3		37.5

Transportation, vehicles and other	33.0		34.0
Furniture and office equipment	18.9		20.4
Demonstration units	11.8		11.1
Construction-in-progress (CIP)	55.6		59.2
Total property and equipment	708.1		686.8
Accumulated depreciation	(294.2)		(262.4)
Property and equipment, net(1)	$	413.9	$	424.4

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(1) At March 30, 2024, property, plant and equipment, net, excluded $11.4 million of idle undeveloped land held outside of the U,S. which was classified as held for sale within the healthcare segment. In May 2024, the Company completed the sale of the land, resulting in a gain of $0.9 million, which was recorded net of transaction costs, foreign currency translation and cumulative translation adjustments to non-operating income (loss).

For the three months ended June 29, 2024 and July 1, 2023, depreciation expense of property and equipment was $10.8 million and $10.7 million, respectively. For the six months ended June 29, 2024 and July 1, 2023, depreciation expense of property and equipment was $21.3 million and $22.6 million, respectively.

For the three months ended June 29, 2024 and July 1, 2023, $6.3 million and $4.2 million of equipment leased to customers was amortized to cost of goods sold, respectively. For the six months ended June 29, 2024 and July 1, 2023, $12.7 million and $7.2 million of equipment leased to customers was amortized to cost of goods sold, respectively.

As of June 29, 2024 and December 30, 2023, accumulated amortization of equipment leased to customers was $1.1 million and $1.5 million, respectively.

The balance in CIP at June 29, 2024 and December 30, 2023 related primarily to the capitalized implementation costs related to a new enterprise resource planning software system, costs related to facility improvements, the expansion of certain key manufacturing facilities globally, machinery and equipment at the Company’s corporate headquarters, as well as on-going development costs associated with 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 CAD123.0 million, plus GST (Purchase Price), subject to certain adjustments. The Company paid CAD21.0 million as a deposit towards the purchase during the year ended December 31, 2022. The balance of the Purchase Price will be due and payable upon the closing of the transaction, which is currently expected to occur in mid-2025.