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Property and Equipment, Net
 3 Months Ended
Mar. 31, 2017
Property Plant And Equipment [Abstract]  
Property and Equipment, Net

3.

PROPERTY AND EQUIPMENT, NET

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

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Property and equipment

 

 

 

 

 

 

 

 

Buildings

 

$

48,250

 

 

$

48,250

 

Software and capitalized software costs

 

 

26,866

 

 

 

23,879

 

Computer equipment

 

 

20,954

 

 

 

18,987

 

Rental clocks

 

 

10,963

 

 

 

10,669

 

Furniture, fixtures and equipment

 

 

6,886

 

 

 

6,695

 

Leasehold improvements

 

 

691

 

 

 

680

 

 

 

 

114,610

 

 

 

109,160

 

Less: accumulated depreciation and amortization

 

 

(39,402

)

 

 

(35,833

)

 

 

 

75,208

 

 

 

73,327

 

Land

 

 

8,993

 

 

 

8,993

 

Construction in progress

 

 

22,284

 

 

 

14,528

 

Property and equipment, net

 

$

106,485

 

 

$

96,848

 

 

We capitalize computer software development costs related to software developed for internal use in accordance with Accounting Standards Codification (“ASC”) Topic 350-40.  For the three months ended March 31, 2017 and 2016, we capitalized $2.9 million and $1.7 million, respectively, of computer software development costs related to software developed for internal use.  

Rental clocks included in property and equipment, net 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 useful estimated lives.

Included in the construction in progress balance at March 31, 2017 and December 31, 2016 is $0.9 million and $1.1 million in retainage, respectively.

We capitalize interest incurred for indebtedness related to construction of our principal executive offices.  For the three months ended March 31, 2017, we incurred interest costs of $0.4 million, $0.1 million of which was capitalized.  For the three months ended March 31, 2106, we incurred interest costs of $0.3 million, less than $0.1 million of which was capitalized.  

Depreciation and amortization expense for property and equipment, net was $3.9 million and $2.5 million for the three months ended March 31, 2017 and 2016, respectively.