Property and equipment as of December 31, 2011 and 2010 consisted of the following (in thousands):

	December 31, 2011			December 31, 2010

Building	$	27,590		$	—
Land		21,330			21,330
Computer equipment		23,763			15,042
Computer software		13,017			6,915
Construction-in-progress		—			4,732
Leasehold improvements		6,902			3,584
Machinery and equipment		2,823			2,680
Office equipment, furniture and fixtures		4,864			2,301

Total property and equipment—cost		100,289			56,584
Less accumulated depreciation and amortization		(20,148	)		(8,689	)

Total property and equipment—net	$	80,141		$	47,895

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets (See Note 4—Significant Accounting Policies). Leasehold improvements and property held under capital leases are amortized over the shorter of their estimated useful lives or the remaining lease terms. Upon retirement or disposal, the asset cost and related accumulated depreciation are removed from the accounts and any gain or loss on disposition is included in Selling, general and administrative expenses.

Expenditures for renewals or betterments that materially extend the useful life of an asset or increase its productivity are capitalized. Expenditures for maintenance and repairs that do not extend asset lives or improve productivity are charged to the appropriate expense account as incurred.

In December 2011, the Company completed construction of its feature animation studio, Tradition Studios, at a cost of $27.6 million. In accordance with ASC 835-20, Broad Transactions—Capitalization of Interest, the Company capitalized interest of $3.3 million as part of the capitalized cost of the building.

Computer software in the table above includes capitalized costs related to internally developed computer software. For the years ended December 31, 2011 and 2010 these costs amounted to $1.2 million and $0.2 million, respectively. The gross carrying amount of capitalized costs associated with internally developed computer software as of December 31, 2011 and 2010 amounted to $4.5 million and $3.3 million, respectively. As of December 31, 2011 and 2010, the accumulated depreciation on the capitalized costs associated with internally developed computer software was $1.8 million and $0.8 million, respectively. The capitalized costs related to internally developed software are being depreciated on a straight-line basis over each asset's estimated useful life that ranges from three to four years.

As of December 31, 2011 and 2010, the gross carrying amount of property and equipment recorded under capital leases was $4.5 million and $4.5 million, respectively. As of these dates, the accumulated depreciation on these leased assets was $3.0 million and $2.0 million, respectively.

Depreciation and amortization expense on property and equipment for continuing operations totaled $13.3 million, $7.3 million, $1.4 million and $5.2 million for the years ended December 31, 2011 and 2010, the 2009 Consolidated Period and the 2009 Predecessor Period, respectively. Depreciation and amortization expense recognized on Property and equipment for the Discontinued Operations, prior to it being classified as held for sale, totaled $nil for the 2009 Predecessor Period.

On January 12, 2011, the Company acquired $8.5 million in equipment from an unrelated third party. The Company financed the first installment payment of $2.5 million through the City of Port St. Lucie bond proceeds, $2.0 million from its general funds and $4.0 million from equipment financing proceeds (see Note 16).

On December 23, 2011, construction of the new production facility was completed and the City of Port St. Lucie issued a certificate of occupancy. The total cost of construction and other related costs were capitalized and recorded as Building for the year ended December 31, 2011.