Property and Equipment, net

12 Months Ended

Dec. 31, 2014

3. Property and Equipment, net

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


	December 31,
	2014		2013
Computer equipment, software, and internally developed software	$	37,110	$	22,517
Furniture and fixtures		2,335		1,654
Leasehold improvements		4,611		2,921
Capitalized facility lease		6,599		—
		50,655		27,092
Less: Accumulated depreciation		(19,924)		(11,854)
Total property and equipment, net	$	30,731	$	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 lease property and recognized a corresponding lease financing obligation of approximately $6.6 million, of which $0.5 million is included in the accrued expenses and other current liabilities balance. 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.

Included in the table above are property and equipment of $8.1 million and $0.4 million as of December 31, 2014 and 2013, respectively, which are capitalizable, but had not yet been placed in service. The $8.1 million balance at December 31, 2014 comprised primarily of the capitalized facility lease of $6.6 million.

Total depreciation and amortization expense of property and equipment was $8.9 million, $5.6 million and $6.4 million for the years ended December 31, 2014, 2013, and 2012, respectively.

Amortization of internal use capitalized software development costs was $5.7 million, $3.8 million and $2.8 million for the years ended December 31, 2014, 2013, and 2012, respectively.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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