Property and Equipment

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

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


	June 30, 2024			December 31, 2023
Property and equipment
Software and capitalized software development costs	$	432,452		$	371,665
Buildings		259,020			179,874
Computer equipment		186,786			164,856
Rental clocks		45,106			42,364
Furniture, fixtures and equipment		41,353			32,413
Other		19,907			18,500
		984,624			809,672
Less: accumulated depreciation and amortization		(501,813	)		(437,291	)
		482,811			372,381
Construction in progress		15,277			92,020
Land		33,796			33,796
Property and equipment, net	$	531,884		$	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 and six months ended June 30, 2024, we capitalized $31.2 million and $61.0 million, respectively, of software development costs related to software developed or obtained for internal use. For the three and six months ended June 30, 2023, we capitalized $22.9 million and $44.2 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 and six months ended June 30, 2024, we incurred interest costs of $0.8 million and $1.6 million,

respectively, none of which was capitalized. For the three and six months ended June 30, 2023, we incurred interest costs of $1.5 million and $2.9 million, respectively, of which we capitalized $0.9 million and $1.4 million, respectively.

Depreciation and amortization expense for property and equipment was $34.6 million and $66.1 million for the three and six months ended June 30, 2024, respectively. Depreciation and amortization expense for property and equipment was $26.8 million and $52.1 million for the three and six months ended June 30, 2023, respectively.