Rental Equipment, Property and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Rental Equipment, Property and Equipment

Rental Equipment

Our rental equipment and associated accumulated depreciation as of December 31, 2020 and 2019, respectively, consisted of the following:


	December 31,
	2020		2019
	(in thousands)
Compressor units	$	379,623	$	370,961
Work-in-progress	3,764		9,129
Rental equipment	383,387		380,090
Accumulated depreciation	(175,802)		(162,348)
Rental equipment, net of accumulated depreciation	$	207,585	$	217,742

Our rental equipment has an estimated useful life between 15 and 25 years. Depreciation expense for rental equipment was $22.7 million and $21.4 million for the year ended December 31, 2020 and 2019, respectively.

Retirement of Rental Equipment

Company management routinely reviews its inventory of rental equipment for retirement or obsolescence. During 2020, management reviewed the rental fleet to determine 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 216 units should be retired from our rental fleet. Accordingly, we recorded a $0.3 million loss on retirement of rental equipment during the year ended December 31, 2020.

During our review of our rental compressor units in 2019, we determined 327 units should be retired from our rental fleet. We recorded a $1.5 million loss on retirement of rental equipment.

Property and Equipment

Property and equipment consists of the following at December 31, 2020 and 2019:


		December 31,
	Useful Lives (Years)	2020		2019
		($ in thousands)
Land	—	$	1,680	$	1,290
Building	39	18,977		18,632
Building and leasehold improvements	39	1,168		1,168
Office equipment and furniture	5	2,016		2,001
Software	5	573		573
Machinery and equipment	7	3,653		3,492
Vehicles	3	7,598		7,560
Total		35,665		34,716
Less accumulated depreciation		(13,916)		(12,847)
Total		$	21,749	$	21,869

Depreciation expense for property and equipment was $2.3 million and $1.7 million for the year ended December 31, 2020 and 2019, 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, 2020 and 2019:


	December 31,
	2020		2019
	(in thousands)
Rentals	$	24,255	$	22,596
Sales	281		275
Service & Maintenance	42		37
Corporate	495		235
Total	$	25,073	$	23,143