Property and Equipment and Other Noncurrent Assets

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment and Other Noncurrent Assets


Note 3 – Property and Equipment and Other Noncurrent Assets

Property and equipment consist of the following:


	March 31, 2023		December 30, 2022
Machinery	$	96,338	$	90,507
Leasehold improvements	43,556		43,129
Computer software, hardware, and equipment	10,053		9,664
Office furniture, fixtures, and equipment	1,354		1,337
Vehicles	401		401
Construction-in-process	21,510		19,869
	173,212		164,907
Less accumulated depreciation	(71,731)		(66,852)
Total property and equipment, net	$	101,481	$	98,055

Depreciation expense was $4.3 million and $4.0 million for the first quarter of 2023 and 2022, respectively.

Cloud Computing Implementation Costs

We capitalize implementation costs associated with hosting arrangement that are service contracts. These costs are recorded to prepaid expenses or other noncurrent assets. To-date, these costs are those incurred to implement a new company-wide ERP system. The balance of capitalized cloud computing implementation costs, net of accumulated amortization, was $11.4 million and $11.6 million as of March 31, 2023 and December 30, 2022, respectively, and is included in other assets on our consolidated balance sheets. The related amortization expense was $0.2 million and $0.2 million during the first quarter of 2023 and 2022, respectively, and is included in selling, general, and administrative expense on our consolidated statements of operations.