Property and Equipment, net

12 Months Ended

Dec. 31, 2016

4. Property and Equipment, net

Property and equipment consisted of the following at December 31, (in thousands):


	2016		2015
Land	$	6,248	$	11,512
Buildings and improvements		7,669		11,032
Leasehold improvements - inclusive of right to use assets		92,168		102,867
Furniture and equipment		91,449		79,046
Rental vehicles		—		1,228
Software		71,509		75,248
Systems development and construction in progress	$	4,498		7,341
		273,541		288,274
Less: accumulated depreciation and amortization		(142,781)		(138,549)
Property and equipment, net	$	130,760	$	149,725

In 2016, unrelated landlords reimbursed the Company for tenant improvements constructed by the Company at various locations. In accordance with ASC 840 — Leases, the Company capitalized the tenant improvements as leasehold improvements and recorded a lease incentive in a like amount. The leasehold improvements are depreciated over the life of the lease and the lease incentives are amortized, as an offset to rent expense, over the life of the lease. Lease incentives for 2016 were $10.4 million of which $0.1 million was amortized as an offset to rent. Included in the lease incentives received was a non-cash lease incentive of $0.7 million.

Depreciation expense for the years ended December 31, 2016, 2015, and 2014 was $23.7 million, $23.3 million, and $23.8 million, respectively.