PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Property and Equipment

PROPERTY AND EQUIPMENT

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

	December 31, 2015			December 31, 2014
Computer equipment	$	62,257		$	49,779
Purchased software and web-site development costs	9,376			7,148
Furniture and fixtures	6,829			6,507
Leasehold improvements	12,262			11,917
Construction-in-progress, subject to a build-to-suit lease	23,914			—
Gross property and equipment	114,638			75,351
Less: accumulated depreciation	(59,843		)	(38,245		)
Property and equipment, net	$	54,795		$	37,106

In January 2015, the Company entered into a build-to-suit lease agreement for a new corporate headquarters, which is currently being constructed in Lehi, Utah. The lease has an anticipated start date of mid-2016 with a 10-year initial term and $37.6 million of lease payments. The Company has concluded that it is the deemed owner of the building (for accounting purposes only) during the construction period. Accordingly, the Company has recorded a construction-in-progress asset as a component of Property and equipment, net of $23.9 million for which there is a corresponding construction financing obligation of $22.9 million recorded as a component of Other long-term liabilities in its Consolidated Balance Sheet as of December 31, 2015. The Company will continue to increase the construction-in-progress asset and corresponding long-term liability as additional building costs are incurred by the landlord during the construction period. Upon completion of the construction, the Company will evaluate whether or not this arrangement meets the criteria for sale-leaseback accounting treatment.