Property and Equipment

9 Months Ended

Sep. 30, 2012

(5) Property and Equipment

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


	June 30,						December 31, 2011			September 30, 2012
	2010			2011			December 31, 2011			September 30, 2012
										(Unaudited)
Computer equipment and software	$	1,752		$	6,562		$	16,586		$	41,919
Furniture and fixtures		192			1,230			1,755			3,017
Leasehold improvements		106			2,747			2,795			815
Construction in progress		298			1,031			3,740			4,955

		2,348			11,570			24,876			50,706
Less: accumulated depreciation		(650	)		(2,103	)		(4,181	)		(11,620	)

Total property and equipment, net	$	1,698		$	9,467		$	20,695		$	39,086

Construction in progress consists primarily of leasehold improvements and servers, networking equipment and storage infrastructure being provisioned in our new third-party data center hosting facilities. Depreciation expense for fiscal 2009, 2010 and 2011, the six months ended December 31, 2010 (unaudited) and 2011 and the nine months ended September 30, 2011 (unaudited) and 2012 (unaudited) was $0.2 million, $0.4 million, $1.5 million, $0.5 million, $2.0 million, $1.8 million and $8.8 million, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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