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Equipment and Leasehold Improvements
 6 Months Ended
Jun. 24, 2016
Property, Plant and Equipment [Abstract]  
Equipment and Leasehold Improvements
Note 6 Equipment and Leasehold Improvements

 

Equipment and leasehold improvements consisted of the following:

 

      As of
   Useful Lives  June 24, 2016  December 25, 2015
Land   Indefinite  $1,571   $1,571 
Buildings   20 years   2,802    2,740 
Machinery and equipment   5-10 years   12,527    10,739 
Computers, data processing and other equipment   3-7 years   8,317    7,598 
Leasehold improvements   7-22 years   44,094    41,653 
Furniture and fixtures   7 years   2,356    1,488 
Vehicles   5-7 years   2,072    2,077 
Other   7 years   95    95 
Construction-in-process       8,088    8,884 
       81,922    76,845 
Less: accumulated depreciation and amortization       (24,764)   (22,562)
Equipment and leasehold improvements, net      $57,158   $54,283 

 

Construction-in-process at June 24, 2016 related primarily to the implementation of its Enterprise Resource Planning (“ERP”) system. The rollout of our ERP system will continue throughout fiscal 2016 and 2017. Construction-in process at December 25, 2015 related primarily to the build out of the Company’s new distribution facility in San Francisco, CA and the implementation of its ERP system. 

 

At June 24, 2016 and December 25, 2015, the Company had $506 of equipment and vehicles financed by capital leases. The Company recorded depreciation on equipment under capital leases of $19 and $24 on these assets during the thirteen weeks ended June 24, 2016 and June 26, 2015, respectively and $43 and $48 on these assets during the twenty-six weeks ended June 24, 2016 and June 26, 2015, respectively.

 

Depreciation expense on equipment and leasehold improvements was $1,332 and $1,419 for the thirteen weeks ended June 24, 2016 and June 26, 2015, respectively and $2,176 and $2,025 for the twenty-six weeks ended June 24, 2016 and June 26, 2015, respectively.

 

Capitalized software is recorded net of accumulated amortization of $4,469 and $3,751 at June 24, 2016 and December 25, 2015, respectively. Depreciation expense on software was $380 and $264 for the thirteen weeks ended June 24, 2016 and June 26, 2015, respectively and $718 and $521 for the twenty-six weeks ended June 24, 2016 and June 26, 2015, respectively.

 

During the thirteen weeks ended June 24, 2016 and June 26, 2015, the Company incurred interest expense of $25,667 and $3,574, respectively. The Company capitalized interest expense of $0 and $252, respectively, during the same periods. During the twenty-six weeks ended June 24, 2016 and June 26, 2015, the Company incurred interest expense of $29,323 and $5,411, respectively. The Company capitalized interest expense of $0 and $739, respectively, during the same periods. Capitalized interest was related to the build outs of the new distribution facilities in Bronx, NY and Las Vegas, NV.