Property and Equipment, net

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property and equipment, net

Property and Equipment, net

Property and equipment consisted of the following at June 30, 2018 and December 31, 2017 (in thousands):

	June 30, 2018			December 31, 2017
Computer equipment, software, and internally developed software	$	91,013		$	83,568
Furniture and fixtures	5,274			4,779
Leasehold improvements	8,565			8,342
Capitalized facility leases	39,302			39,302
	144,154			135,991
Less: Accumulated depreciation	(73,198		)	(65,281		)
Total property and equipment, net	$	70,956		$	70,710

The Company is considered the owner, for accounting purposes only, of one of its Santa Monica, California leased office spaces and of its San Francisco, California leased office space (collectively, the “Premises”) as it had taken on certain risks of construction build cost overages above normal tenant improvement allowances. Accordingly, at June 30, 2018 and December 31, 2017, the Company has capitalized $39.3 million related to the Premises, which represents the estimated fair value of the leased properties, additions for capitalized interest incurred during the construction periods, and capitalized costs related to improvements to the building. At June 30, 2018 and December 31, 2017, the Company recorded accumulated amortization of $2.7 million and $2.2 million, respectively. Additionally, at June 30, 2018 and December 31, 2017, the Company recognized a corresponding lease financing obligation of approximately $31.5 million and $31.4 million, respectively.

Included in the table above are property and equipment of $3.1 million and $7.8 million at June 30, 2018 and December 31, 2017, respectively, which are capitalizable but had not yet been placed in service. The $3.1 million and $7.8 million balances at June 30, 2018 and December 31, 2017, respectively, were comprised primarily of capitalized software not ready for its intended use.

Total depreciation and amortization expense of property and equipment was $4.7 million for the three months ended June 30, 2018 and 2017. Total depreciation and amortization expense of property and equipment was $8.9 million and $9.8 million for the six months ended June 30, 2018 and 2017, respectively.

Amortization of internal use capitalized software development costs was $3.3 million and $3.4 million for the three months ended June 30, 2018 and 2017, respectively. Amortization of internal use capitalized software development costs was $6.2 million and $7.4 million for the six months ended June 30, 2018 and 2017, respectively.