Property and Equipment

12 Months Ended

Dec. 31, 2013

Property and Equipment

5. Property and Equipment

Property and equipment consisted of the following at December 31, 2013 and 2012:

	Year Ended December 31,
	2013			2012
In-vehicle devices—installed	$	96,431		$	71,110
In-vehicle devices—uninstalled		4,550			2,843
Computer equipment		6,645			3,984
Internal-use software		4,806			2,393
Furniture and fixtures		1,873			999
Leasehold improvements		1,813			687
Total property and equipment		116,118			82,016
Less: Accumulated depreciation and amortization		(54,386	)		(40,884	)
Property and equipment, net	$	61,732		$	41,132

Depreciation and amortization expense related to property and equipment for the years ended December 31, 2013, 2012, and 2011 totaled $12,994, $9,547, and $7,581, respectively, of which $11,684, $8,744, and $7,111 was recorded in cost of subscription revenue related to depreciation of installed in-vehicle devices and amortization of internal-use software and the remainder was included in various operating expenses. The carrying value of installed in-vehicle devices (including shipping and installation costs), net of accumulated depreciation, was $48,373 and $34,097 at December 31, 2013 and 2012, respectively.

During the years ended December 31, 2013 and 2012, the Company capitalized costs of $2,225 and $883, respectively, associated with the development of its internal-use software related to its on-demand software accessed by customers via its website and the website itself. Amortization expense of the internal-use software totaled $482, $573, and $336 during the years ended December 31, 2013, 2012, and 2011, respectively. The carrying value of capitalized internal-use software was $3,192 and $1,328 as of December 31, 2013 and 2012, respectively. Foreign exchange differences also contribute to changes in the carrying value of internal-use software.

As of December 31, 2013 and 2012, the gross amount of assets under capital leases totaled $1,593 and $1,121, respectively, and related accumulated amortization totaled $874 and $456, respectively.

During the years ended December 31, 2013, 2012, and 2011, the Company expensed $3,086, $2,150, and $950, respectively, associated with the replacement of installed in-vehicle devices resulting from the Company’s proactive migration to current technology and to a lesser degree a required replacement of those devices. The expense was recorded in cost of subscription revenue and is included in loss on disposal of property and equipment and other assets in the consolidated statements of cash flows.