Balance Sheet Account Details

9 Months Ended

Sep. 30, 2012

Balance Sheet Account Details [Abstract]

Balance Sheet Account Details

(2) Balance Sheet Account Details

Short-term Investments

During the nine months ended September 30, 2012, the Company purchased commercial paper, corporate notes and bonds and U.S. government agency securities, all with maturities of less than twelve months. The following is a summary of short-term investments at September 30, 2012 (in thousands):

	September 30, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale securities:
Commercial paper	$	36,659	$	1	$	(12	)	$	36,648
Corporate notes and bonds		100,806		30		(22	)		100,814
U.S. government agency securities		2,022		1		—			2,023
Total available-for-sale securities	$	139,487	$	32	$	(34	)	$	139,485

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As of September 30, 2012, the Company had certain available-for-sale securities in a gross unrealized loss position, all of which had been in such position for less than twelve months. There was no impairments considered other-than-temporary as it is more likely than not the Company will hold the securities until maturity or a recovery of the cost basis. The following table shows the fair values and the gross unrealized losses of these available-for-sale securities aggregated by investment category (in thousands):

	September 30, 2012
	Fair Value		Gross Unrealized Losses
Commercial paper	$	34,908	$	(12	)
Corporate notes and bonds		65,782		(22	)
Total	$	100,690	$	(34	)

Realized gains and losses are determined based on the specific identification method and are reported in interest and other income (expense), net in the condensed consolidated statements of comprehensive income (loss). For the nine months ended September 30, 2012, gross realized gains and losses on sales of the Company’s available-for-sale securities were immaterial.

Property and Equipment

Property and equipment, net consists of the following (in thousands):

	September 30, 2012			December 31, 2011
Computer equipment and software	$	41,919		$	16,586
Furniture and fixtures		3,017			1,755
Leasehold improvements		815			2,795
Construction in progress		4,955			3,740
		50,706			24,876
Less: accumulated depreciation		(11,620	)		(4,181	)
Total property and equipment, net	$	39,086		$	20,695

Construction in progress consists primarily of leasehold improvements and servers, networking equipment and storage infrastructure being provisioned in the Company’s new third-party data center hosting facilities. Depreciation expense for the three months ended September 30, 2012 and 2011 was $3.9 million and $0.8 million, respectively, and for the nine months ended September 30, 2012 and 2011 were $8.8 million and $1.8 million, respectively.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):

	September 30, 2012		December 31, 2011
Taxes payable	$	3,376	$	7,399
Bonuses and commissions		6,710		6,080
Accrued compensation		5,895		3,570
Accrued third-party professional services		2,141		1,919
Other employee expenses		5,447		1,809
Current portion of facility exit obligation		597		—
Other		7,872		4,831
Total accrued expenses and other current liabilities	$	32,038	$	25,608