Property and Equipment, net

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and equipment consisted of the following at December 31, 2019 and 2018 (in thousands):



	December 31,
	2019			2018
Computer equipment, software, and internally developed software	$	60,049		$	99,204
Furniture and fixtures	4,927			4,758
Leasehold improvements	15,839			8,602
Capitalized facility leases	—			30,632
	80,815			143,196
Less: Accumulated depreciation	(51,018		)	(81,685		)
Total property and equipment, net	$	29,797		$	61,511

Prior to the adoption of the new lease guidance, the Company was considered the owner, for accounting purposes only, of one of its Santa Monica, California leased office spaces as it had taken on certain risks of construction build cost overages above normal tenant improvement allowances. This capitalized facility lease was removed from the balance sheet at adoption on January 1, 2019. Refer to Note 3 for further details. Prior to the adoption of the new lease guidance and as of December 31, 2018 , the Company had capitalized $30.6 million related to the capitalized facility lease, 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. No interest costs related to this capitalized facility lease was capitalized for the year ended December 31, 2018. At

December 31, 2018, the Company had recorded accumulated amortization of $2.3 million. Additionally, at December 31, 2018, the Company recognized a corresponding lease financing obligation of approximately $24.8 million.

Included in the table above are property and equipment of $1.4 million and $1.1 million as of December 31, 2019 and 2018, respectively, which are capitalizable but had not yet been placed in service. These balances were comprised primarily of capitalized software not ready for its intended use.

Total depreciation and amortization expense of property and equipment was $19.4 million, $18.8 million, and $18.6 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Amortization of internal use capitalized software development costs was $14.0 million, $13.4 million, and $13.5 million for the years ended December 31, 2019, 2018, and 2017, respectively.

During the year ended December 31, 2019, the Company disposed of or retired certain fully depreciated computer equipment, software, and internally developed software with an original cost basis of $52.1 million, that resulted in the recognition of an immaterial gain.

Amortization of capitalized facility leases was $1.0 million for the years ended December 31, 2018 and 2017.