Property and Equipment, Net

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Furniture and fixtures, computer software and equipment and leasehold improvements are recorded at cost and presented net of depreciation. Furniture and fixtures and computer software and equipment are depreciated on a straight-line basis over lives ranging from three to five years. Internal-use software is amortized on a straight-line basis over a three-year period. During the application development phase, we categorize capitalized costs in our construction in progress account until the build is put into production and we move the asset to internal-use software. We record land at historical cost. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease terms or the asset lives.

The components of property and equipment, net are as follows (in thousands):



	December 31,
	2017			2016
Furniture and fixtures	$	3,699		$	3,090
Computer software and equipment	11,624			9,988
Internal-use software	1,643			1,514
Construction in progress	4,605			1,009
Leasehold improvements	16,351			13,466
Land	398			398
Total property and equipment	38,320			29,465
Accumulated depreciation	(14,861		)	(9,285		)
Property and equipment, net	$	23,459		$	20,180

Depreciation expense related to property and equipment for the years ended December 31, 2017, 2016 and 2015 was $5.4 million, $4.7 million and $3.6 million, respectively. Amortization expense related to internal-use software of $0.4 million, $0.4 million and $0.3 million was included in those expenses for the years ended December 31, 2017, 2016 and 2015, respectively. Within the Alarm.com segment, we disposed of and wrote off $0.8 million of capitalized costs to research and development expenses within the consolidated statements of operations primarily related to the design of internal-use software that no longer met the requirements for capitalization during the year ended December 31, 2017.