PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

‘Property and equipment, net’ consists of the following:


	December 31,
	2022		2021
	(in thousands)
Machinery and equipment	$	146,821	$	53,976
Leasehold improvements	76,363		64,625
Construction-in-progress	28,699		53,332
Furniture, fixtures, and other	26,782		20,210
Property and equipment	278,665		192,143
Less: Accumulated depreciation and amortization	(97,136)		(83,745)
Property and equipment, net	$	181,529	$	108,398

Asset Retirement Obligations

We are contractually obligated, under certain of our lease agreements, to restore certain retail and office facilities back to their original condition. At lease inception, the estimated fair value of these liabilities is recorded along with a related asset. Asset retirement obligations were not significant to the consolidated balance sheets in the years ended December 31, 2022 or 2021.

Depreciation and Amortization Expense

Depreciation and amortization expense related to property and equipment, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses’ was:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Cost of sales	$	10,043	$	6,234	$	3,921
Selling, general and administrative expenses	9,599		8,708		7,914
Total depreciation and amortization expense	$	19,642	$	14,942	$	11,835

Disposals of Property and Equipment and Intangible Assets

During the years ended December 31, 2022, 2021, and 2020, we recognized net losses on disposals of property and equipment and intangible assets of $1.0 million, $0.3 million, and $0.3 million, respectively. Gains and losses on disposals of property and equipment and intangible assets are included in ‘Selling, general and administrative expenses’ in the consolidated statements of operations.

Additionally, we impaired our leasehold improvement assets for a retail location in the year ended December 31, 2020, as described in Note 8 — Fair Value Measurements.