Property and Equipment, net

12 Months Ended

Dec. 31, 2017

4. Property and Equipment, net

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


	2017		2016
Land	$	12,243	$	6,248
Buildings and improvements		17,791		7,669
Leasehold improvements - inclusive of right to use assets		106,681		92,168
Furniture and equipment		115,429		91,449
Software		73,310		71,509
Systems development and construction in progress		34,382		4,498
		359,836		273,541
Less: accumulated depreciation and amortization		(161,814)		(142,781)
Property and equipment, net	$	198,022	$	130,760

In 2017 and 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 2017 and 2016 were $24.7 million and $10.4 million, respectively, of which $0.5 million and $0.1 million, respectively, were amortized as an offset to rent.

Depreciation expense for the years ended December 31, 2017, 2016, and 2015 was $29.0 million, $23.7 million, and $23.3 million, respectively.