Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

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

		As of December 31,
	Estimated useful lives	2019		2018
Computer equipment (1)	3 years	$	35,190	$	36,670
Furniture and equipment	2 - 4 years	7,999		6,574
Leasehold improvements (2)	Shorter of life of asset or lease term	48,688		10,731
Construction in progress	Not applicable	206		551
Building (2)	25 years	66,650		81,892
Website development and internal-use software (3)	3 - 5 years	106,215		69,201
		264,948		205,619
Less: Accumulated depreciation and amortization		120,084		85,440
		$	144,864	$	120,179

(1) Computer equipment includes leased equipment which are accounted for as finance leases since the adoption of ASU 2016-02—Leases in the first quarter of 2019. These leases were previously accounted for as capital leases.

(2) In 2014 the Company applied build-to-suit accounting treatment to its headquarters lease in Brooklyn, New York. Upon adoption of ASU 2016-02—Leases in the first quarter of 2019, the Company derecognized the existing facility financing obligation and existing building asset for sale-leaseback transactions that currently do not qualify for sale accounting of $60.0 million and $51.1 million, respectively, and $22.1 million was reclassified from building to leasehold improvements and the Company recognized a new ROU asset of $66.7 million for the associated lease. For more information on the adoption of ASU 2016-02—Leases see “Note 1—Basis of Presentation and Summary of Significant Accounting Policies.”

(3)

On August 15, 2019, the Company acquired Reverb in a business combination, including the developed technology which was recognized at fair value. This amount is included in website development and internal-use software and is amortized on a straight-line basis over a period of 3 years.

Schedule of Capitalized Software Development

The following table summarizes capitalized website development and internal-use software activities during the periods indicated (in thousands):

	Year Ended   December 31,
	2019		2018
Balance as of the beginning of the period	$	69,201	$	48,333
Additions to website development	8,687		22,068
Acquisition of developed technology	30,300		—
Less: Retirements	1,973		1,200
	106,215		69,201
Less:
Accumulated amortization balance as of the beginning of the period	38,418		29,991
Amortization Expense	18,737		9,519
Less: Retirements	340		1,092
Accumulated amortization balance as of the end of the period	56,815		38,418
	$	49,400	$	30,783