BALANCE SHEET COMPONENTS

Property and Equipment, net

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



	June 30,			December 31,
	2017			2016
Computer equipment	$	19,293		$	17,262
Leasehold improvements	11,760			11,123
Capitalized software development costs	2,114			1,877
Office equipment	2,887			2,668
Software licenses	4,174			3,258
Building, leased	16,438			16,438
Property and equipment – gross	56,666			52,626
Less: accumulated depreciation and amortization	(23,205		)	(19,522		)
Property and equipment – net	$	33,461		$	33,104

Depreciation and amortization expense, excluding amortization of capitalized software and intangible assets, for the three months ended June 30, 2017 and 2016 was $1,895,000 and, $1,660,000 respectively. Depreciation and amortization expense, excluding amortization of capitalized software and intangible assets, for the six months ended June 30, 2017 and 2016 was $3,804,000 and $3,352,000, respectively.

The Company capitalized software development costs of $237,000 and $78,000 for the three months ended June 30, 2017 and 2016, respectively. The Company capitalized software development costs of $237,000 and $114,000 for the six months ended June 30, 2017 and 2016, respectively. The Company amortized software development costs of $7,000 and $75,000 during the three months ended June 30, 2017 and 2016, respectively. The Company amortized software development costs of $14,000 and $155,000 during the six months ended June 30, 2017 and 2016, respectively. The net book value of capitalized software development costs was $243,000 and $20,000 as of June 30, 2017 and December 31, 2016, respectively.

The Company occupies office space constructed under a build-to-suit lease arrangement for which the Company is considered the “deemed owner” for accounting purposes. As such, building costs were recorded to “Building, leased” within “Property and equipment, net” and a related financing obligation was recorded in April 2015, when the Company began to occupy the building.

Accrued Expenses and Other Liabilities

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



	June 30,		December 31,
	2017		2016
Accrued payroll	$	6,291	$	6,072
Accrued vacation	2,582		2,069
Employee stock purchase plan contributions	1,374		1,171
Other liabilities	1,476		1,158
Total accrued expenses and other liabilities	$	11,723	$	10,470