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Rental Equipment, Property and Equipment
 12 Months Ended
Dec. 31, 2021
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, 2021 and 2020, respectively, consisted of the following:
December 31,
20212020
(in thousands)
Compressor units$374,336 $379,623 
Work-in-progress5,212 3,764 
Rental equipment379,548 383,387 
Accumulated depreciation(172,563)(175,802)
Rental equipment, net of accumulated depreciation$206,985 $207,585 


Our rental equipment has an estimated useful life between 15 and 25 years. Depreciation expense for rental equipment was $22.9 million and $22.7 million for the year ended December 31, 2021 and 2020, respectively. During the year ended December 31, 2021 we added 65 units to our rental fleet, 35 of which were repurchased from a significant customer who had previously purchased these units from us under a bill and hold arrangement in prior years, but had not yet placed the units in service.


Retirement of Rental Equipment

Company management routinely reviews its inventory of rental equipment for retirement or obsolescence. During 2021, 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 263 units should be retired from our rental fleet. Accordingly, we recorded a $3.1 million loss on retirement of rental equipment during the year ended December 31, 2021.

During our review of our rental compressor units in 2020, we determined 216 units should be retired from our rental fleet. We recorded a $0.3 million loss on retirement of rental equipment.
Property and Equipment

Property and equipment consists of the following at December 31, 2021 and 2020:
December 31,
 Useful Lives (Years)20212020
($ in thousands)
Land —$1,680 $1,680 
Building3918,977 18,977 
Leasehold improvements391,197 1,168 
Office equipment and furniture52,016 2,016 
Software5573 573 
Machinery and equipment73,874 3,653 
Vehicles38,295 7,598 
Total36,612 35,665 
Less accumulated depreciation(15,784)(13,916)
Total$20,828 $21,749 

Depreciation expense for property and equipment was $2.4 million and $2.3 million for the year ended December 31, 2021 and 2020, 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, 2021 and 2020:
December 31,
 20212020
(in thousands)
Rentals$24,423 $24,255 
Sales281 281 
Service & Maintenance49 42 
Corporate476 495 
Total$25,229 $25,073