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Rental Equipment, Property and Equipment | 12 Months Ended
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Dec. 31, 2019
Property, Plant and Equipment [Abstract] |
Rental Equipment, Property and Equipment | Rental Equipment, Property and Equipment Rental Equipment Our rental equipment and associated accumulated depreciation as of December 31, 2019 and 2018, respectively, consisted of the following (in thousands):
| 2019 |  | 2018
Compressor units | $ | 370,961 |  |  | $ | 329,697 |
Work-in-progress | 9,129 |  |  | 11,868 |
Rental equipment | 380,090 |  |  | 341,565 |
Accumulated depreciation | (162,348) |  |  | (165,459) |
Rental equipment, net of accumulated depreciation | $ | 217,742 |  |  | $ | 176,106 |
Our rental equipment has an estimated useful life between 15 and 25 years. Depreciation expense for rental equipment was $21.4 million, $20.9 million and $20.0 million for the year ended December 31, 2019, 2018 and 2017, respectively. In January 2019, the Company reviewed the estimated useful lives of its rental equipment. This review indicated that the actual lives of its larger horsepower rental equipment were longer than the estimated useful lives used for depreciation purposes in the Company’s financial statements. These units incorporate newer technology and heavier, more robust castings and forging, which allows for complete overhauls at longer cycles when compared to its older, lower horsepower units. Accordingly, as of January 1, 2019, the Company changed its estimates of the useful lives of for these higher horsepower units from 15 years to 20 years (for its 400-600 horsepower units) or 25 years (for its 1,380 horsepower units). This analysis is consistent with our peers, which are depreciating their compressor units over 20 to 30 years. The effect of this change in estimate was to reduce 2019 depreciation expense by approximately $1.47 million, decrease 2019 net loss by $1.13 million, and decrease 2019 basic and diluted loss per share by $0.09. Retirement of Rental Equipment Given its concerns about the current industry backdrop, Company management determined during the third quarter of 2019 which units were not of the type, configuration, make or model that our customers are demanding or that were not cost efficient to refurbish, maintain and/or operate. As a result of this review, we determined 327 units should be retired from our rental fleet. Accordingly, we recorded a $1.5 million loss on retirement of rental equipment during the year ended December 31, 2019. During our review of our rental compressor units in 2018, we determined 13 units should be retired from our rental fleet. We recorded no loss on this retirement, as these units were fully depreciated. We did not record any retirements from our rental fleet in 2017. Property and Equipment Property and equipment consists of the following at December 31, 2019 and 2018 (in thousands):
| Useful Lives (Years) |  | 2019 |  | 2018
Land | — |  |  | $ | 1,290 |  |  | $ | 1,290 |
Building | 39 |  | 18,632 |  |  | 6,116 |
Building and leasehold improvements | 39 |  | 1,168 |  |  | 808 |
Office equipment and furniture | 5 |  | 2,001 |  |  | 1,492 |
Software | 5 |  | 573 |  |  | 573 |
Machinery and equipment | 7 |  | 3,492 |  |  | 3,324 |
Vehicles | 3 |  | 7,560 |  |  | 6,292 |
Construction in Progress | — |  |  | — |  |  | 8,319 |
Total |  |  |  | 34,716 |  |  | 28,214 |
Less accumulated depreciation |  |  | (12,847) |  |  | (11,570) |
Total |  |  | $ | 21,869 |  |  | $ | 16,644 |
Depreciation expense for property and equipment was $1.7 million, $1.1 million and $1.2 million for the year ended December 31, 2019, 2018 and 2017, respectively. Depreciation Expense by Product Line The following table depicts annual depreciation expense associated with each product line as well as our corporate activities at December 31, 2019, 2018 and 2017 (in thousands):
| 2019 |  | 2018 |  | 2017
Rentals | $ | 22,596 |  |  | $ | 21,611 |  |  | $ | 20,873 |
Sales | 275 |  |  | 271 |  |  | 267 |
Service & Maintenance | 37 |  |  | 22 |  |  | 22 |
Corporate | 235 |  |  | 50 |  |  | 29 |
Total | $ | 23,143 |  |  | $ | 21,954 |  |  | $ | 21,191 |

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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
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