Property and Equipment

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Property and equipment and accumulated depreciation and amortization were as follows:


	March 31, 2024			December 31, 2023
Property and equipment
Software and capitalized software development costs	$	401,431		$	371,665
Buildings		179,933			179,874
Computer equipment		172,081			164,856
Rental clocks		43,755			42,364
Furniture, fixtures and equipment		32,657			32,413
Other		18,508			18,500
		848,365			809,672
Less: accumulated depreciation and amortization		(468,352	)		(437,291	)
		380,013			372,381
Construction in progress		106,373			92,020
Land		33,796			33,796
Property and equipment, net	$	520,182		$	498,197

We capitalize software development costs related to software developed or obtained for internal use in accordance with ASC 350-40. For the three months ended March 31, 2024 and 2023, we capitalized $29.8 million and $21.4 million, respectively, of software development costs related to software developed or obtained for internal use.

Rental clocks included in property and equipment, net in the consolidated balance sheets, represent time clocks issued to clients under month-to-month operating leases. As such, these items are transferred from inventory to property and equipment and depreciated over their estimated useful lives.

Prior to the repayment of our debt on November 21, 2023, we capitalized interest costs incurred for indebtedness related to construction in progress. For the three months ended March 31, 2024 and 2023, we incurred interest costs of $0.8 million and $1.4 million, respectively, of which we capitalized $0.0 million and $0.5 million, respectively. Included in the construction in progress balance at March 31, 2024 and December 31, 2023 is $2.0 million and $4.2 million in retainage, respectively.

Depreciation and amortization expense for property and equipment was $31.5 million and $25.3 million for the three months ended March 31, 2024 and 2023, respectively.