Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2014

Property and equipment consists of the following for the periods presented:

	March 31, 2014			December 31, 2013
	(in millions)
Capitalized software and website development	$	86		$	73
Leasehold improvements		34			22
Computer equipment		24			21
Furniture, office equipment and other		6			6
		150			122
Less: accumulated depreciation		(58	)		(48	)
Construction in progress (1)		22			8
Property and equipment, net	$	114		$	82

(1)

We capitalize construction in progress for build-to-suit lease agreements where we are considered the owner, for accounting purposes only, during the construction period. These amounts represent construction costs to date incurred by the landlord of our future corporate headquarters in Needham, MA. During the three months ended March 31, 2014 we capitalized $14 million in construction costs with a corresponding liability recorded in other long-term liabilities on our unaudited consolidated balance sheet. Refer to “Note 12 – Commitments and Contingencies,” in the Notes to our Consolidated Financial Statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2013 for additional information on our future corporate headquarters lease.