Property and Equipment

3 Months Ended

Mar. 31, 2017

3. Property and Equipment

Property and equipment consist of the following (in thousands):


	Estimated Useful Life (Years)		March 31, 2017			December 31, 2016
Land		—	$	875		$	875
Buildings		39-40		17,389			17,389
Building improvements		5-40		34,957			34,957
Machinery and equipment		3-15		62,992			62,992
Furniture, fixtures and office equipment		5-10		3,556			3,556
Computer equipment and software		3		8,531			8,531
Construction in progress		—		202			202

				128,502			128,502
Less accumulated depreciation				(100,020	)		(99,575	)

Total property and equipment, net			$	28,482		$	28,927

Depreciation and amortization expense related to property and equipment for the three months ended March 31, 2017 and 2016 was $0.4 million and $0.6 million, respectively.

On January 6, 2017, the Company and Rexford Industrial Realty, L.P. (“Rexford”) entered into an Agreement of Purchase and Sale and Joint Escrow Instructions (the “Purchase Agreement”), pursuant to which the Company agreed to sell and Rexford agreed to purchase certain parcels of real estate owned by the Company in Valencia, California and certain related improvements, personal property, equipment, supplies and fixtures (collectively, the “Property”) for $17.3 million. The sale and purchase of the aforementioned Property for $17.3 million pursuant to the terms of the Purchase Agreement, as amended, was completed on February 17, 2017. Net proceeds were $16.7 million after deducting broker’s commission and other fees of approximately $0.6 million paid by the Company. Net proceeds received approximated the carrying value of the asset held for sale.