Property and Equipment

12 Months Ended

Dec. 31, 2016

Property Plant And Equipment [Abstract]

Property and Equipment

7.Property and Equipment

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

	Estimated	December 31,			December 31,
	Useful Lives	2016			2015
Vehicles acquired under capital leases	3-4 years	$	20,384		$	24,149
Leasehold improvements	1-12 years		14,694			4,116
Furniture and computer and other equipment	3 years		6,270			6,524
			41,348			34,789
Less: Accumulated depreciation and amortization			(18,149	)		(12,181	)
			23,199			22,608
Build-to-suit lease asset under construction			—			25,560
Property and equipment, net		$	23,199		$	48,168

The Company recorded depreciation and amortization related to property and equipment of $11.1 million, $8.2 million and $3.4 million for the years ended December 31, 2016, 2015 and 2014.

The Company leases fleet vehicles that are accounted for as capital leases and are included in property and equipment, net. Depreciation on vehicles under capital leases totaling $5.5 million, $5.5 million and $3.0 million was capitalized in solar energy systems, net for the years ended December 31, 2016, 2015 and 2014.

Because of its involvement in certain aspects of the construction of its headquarters building in Lehi, UT, the Company was deemed the owner of the building for accounting purposes during the construction period. Accordingly, the Company recorded a build-to-suit lease asset and corresponding liabilities during the construction period. In May 2016, construction on the headquarters building was completed. The building qualified for sale-leaseback treatment as the Company determined the lease to be a normal leaseback, payment terms indicated the landlord has continuing investment in the property and the payment terms transferred the risks and rewards of ownership to the landlord. As such, the Company removed the build-to-suit lease asset and liabilities from its consolidated balance sheet as of December 31, 2016. For additional information regarding the related build-to-suit liabilities and the resulting ongoing lease, see Note 18—Commitments and Contingencies.

Future minimum lease payments for vehicles under capital leases as of December 31, 2016 were as follows (in thousands):

Years Ending December 31,
2017	$	5,751
2018		4,119
2019		1,239
2020		477
2021		—
Thereafter		—
Total minimum lease payments		11,586
Less: interest		947
Present value of capital lease obligations		10,639
Less: current portion		5,163
Long-term portion	$	5,476