Property and Equipment

9 Months Ended

Sep. 30, 2015

Property Plant And Equipment [Abstract]

Note 3. Property and Equipment

Property and equipment consisted of the following: (in thousands)


	December 31, 2014			September 30, 2015
Software	$	21,730		$	20,415
Computers and office equipment		10,182			10,257
Furniture and fixtures		2,483			2,388
Other equipment		4,266			4,326
Vehicles		297			281
Construction in process		12,116			12,746
Leasehold improvements		3,340			3,443
		54,414			53,856
Less accumulated depreciation and amortization		(29,776	)		(33,088	)
Property and equipment, net	$	24,638		$	20,768

Depreciation and amortization of property and equipment for the three months ended September 30, 2014 and 2015 was $1.5 million and $1.3 million, respectively, and $4.4 million and $4.2 million for the nine months ended September 30, 2014 and 2015, respectively. Depreciation and amortization of property and equipment has been recorded in selling, general and administrative expenses.

The Company entered into a lease contract during 2014 for a right of use license with nonexclusive access to certain DAS deployment sites. The term of the right of use is an initial ten years with two optional renewals of five years each. The Company records the cost of the DAS system within fixed assets as construction in process that will be depreciated over the asset’s useful life once completed.

The Company recorded an impairment charge of $0.5 million during the nine months ended September 30, 2015, related to the Multiband headquarters building in Minnetonka, Minnesota. The building was listed for sale during the third quarter of 2014. The assessed fair value of the building was based on the selling price of other assets within the surrounding area. The market price was reasonable in relation to the current selling price of similar assets on the market. During the nine months ended September 30, 2015, based on recent a proposal received on the sale of the building, the Company evaluated the carrying value against the fair value of the building, less costs that will be incurred to complete the sale of the building, and concluded that the value of the building was impaired. The measure in determining the fair value was based on significant inputs not observable in the market, which is referred to as a Level 3 input. Accordingly, an impairment charge has been included in the accompanying consolidated statements of operations and comprehensive loss. The building continues to be recorded in assets held for sale in the accompanying consolidated balance sheets.

During the nine months ended September 30, 2015, the Company decided to transition to a single Enterprise Resource Planning system for the consolidated Company. All development work on the inventory module for the discontinued system, which will be sunset upon transition, was ceased. The Company impaired $2.3 million in internally developed software related to the transition to a single system, which represents the previously capitalized costs associated with these assets. The impairment expense is reflected in the Company’s consolidated statements of operation and comprehensive loss.