Property and Equipment, net

9 Months Ended

Sep. 30, 2014

Property and Equipment, net

Property and Equipment, net

4.Property and Equipment, net

Property and equipment consisted of the following at September 30, 2014 and December 31, 2013 (in thousands):

	September 30,		December 31,
	2014		2013
Computer equipment and internally developed software	$	34,316	$	22,517
Furniture and fixtures		2,110		1,654
Leasehold improvements		3,339		2,921
Capitalized facility lease		5,970		—
		45,735		27,092
Less: Accumulated depreciation		(17,047)		(11,854)
Total property and equipment, net	$	28,688	$	15,238

The Company is considered the owner, for accounting purposes only, during the construction period of its San Francisco, California office lease as it has taken on certain risks of construction build cost overages above normal tenant improvement allowances. Accordingly, the Company has capitalized the estimated fair value of the leased property and recognized a corresponding lease financing obligation of approximately $6.0 million. As construction costs are incurred, the Company will recognize an increase in capitalized facility lease for costs related to structural improvements. Normal leasehold improvements related to the facility are recorded in leasehold improvements in the table above.

Total depreciation and amortization expense of property and equipment was $2.4 million and $1.7 million for the three months ended September 30, 2014 and 2013, respectively. Total depreciation and amortization expense of property and equipment was $6.2 million and $5.2 million for the nine months ended September 30, 2014 and 2013, respectively.

Amortization of internal use capitalized software development costs was $1.7 million and $1.1 million for the three months ended September 30, 2014 and 2013, respectively.  Amortization of internal use capitalized software development costs was $3.9 million and $2.4 million for the nine months ended September 30, 2014 and 2013, respectively.