PROPERTY AND EQUIPMENT

12 Months Ended

Jun. 30, 2019

4. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following (amounts in thousands):


	Estimated
	Useful	June 30,
	Lives	2018		2019
Land	N/A	$	16,569	$	16,564
Buildings, civil works and improvements	5-40 years		56,585		55,391
Leasehold improvements	1-13 years		9,681		8,311
Equipment and tooling	3-10 years		117,294		128,428
Furniture and fixtures	3-10 years		3,331		3,190
Computer equipment	3-5 years		18,759		18,733
Computer software	3-10 years		19,509		20,146
Computer software implementation in process	N/A		4,318		8,563
Construction in process	N/A		790		5,760
Total			246,836		265,086
Less accumulated depreciation and amortization			(131,312)		(137,701)
Property and equipment, net		$	115,524	$	127,385

During fiscal 2017, 2018 and 2019, depreciation expense was approximately $56.0 million, $43.3 million and $20.5 million, respectively.

In January 2018, we entered into a two-year agreement with the Mexican government to continue to provide security screening services. Upon inception of the new contract, we transferred certain fixed assets with a net book value of $29.5 million to the customer, and this remaining cost to obtain the contract is amortized on a straight-line basis over the term of the contract as corresponding revenues are recognized. During fiscal 2018 and 2019, we recognized $6.9 million and $14.3 million, respectively, of amortization expense related to such assets. As of June 30, 2019, $7.7 million was included in Prepaid expenses and other current assets.