Property and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property and equipment and related accumulated depreciation are as follows (in millions):



	December 31,
	2016		2015
Land	$	34.2	$	35.9
Buildings	160.3		181.5
Technology equipment	213.0		200.5
Software	508.2		489.4
Furniture, fixtures and other equipment	122.1		138.0
Leasehold improvements	76.4		72.2
Construction-in-progress	18.3		13.6
	1,132.5		1,131.1
Less accumulated depreciation and amortization	896.8		874.4
Properties, net	$	235.7	$	256.7

In December 2014, we entered into a transaction under which Industrial Revenue Bonds (“IRBs”) are issued by a municipality to finance the purchase and/or construction of certain real and personal property. Pursuant to the terms of the IRBs, we transferred title of certain fixed assets to the municipality. Tax benefits associated with the IRBs include a provision for a 10-year property tax abatement and sales tax exemption on the property financed with the proceeds of the IRBs. The municipality holds legal title to the bond financed assets and leases them to us subject to an option to purchase for nominal consideration, which we may exercise at any time. We are the bondholder as well as the lessee of the property purchased with the IRBs proceeds. We record the property on our Consolidated Balance Sheet as all risks and benefits remain with us, along with a capital lease obligation to repay the proceeds of the IRBs. Moreover, as holder of the bonds, we have the right to offset the amounts due under the leases with the amounts due to us from the bonds. Accordingly, no net debt associated with the IRBs is reflected in our Consolidated Balance Sheet. Upon maturity or redemption of the bonds, which is within our sole control, title to the leased property reverts back to us. At December 31, 2016 and 2015, we held IRBs with an aggregate principal amount of $87.6 million and $73.2 million, respectively.

At December 31, 2016 and 2015, there was approximately $2.5 million and $11.8 million, respectively, of assets under capital lease, net of accumulated depreciation of $2.2 million and $10.7 million, respectively, included in the above table. Depreciation expense for the years ended December 31, 2016, 2015 and 2014, was $78.2 million, $77.6 million and $80.7 million, respectively.

Included in software is $57.7 million of proprietary software acquired in business combinations. At both December 31, 2016 and 2015, the net book value of this acquired software was $14.5 million.

The following table summarizes software development costs for our proprietary systems and software products (in millions):



	Year Ended December 31,
	2016		2015		2014
Capitalized software development costs	$	21.5	$	23.3	$	28.8
Amortization of capitalized software development costs	22.9		25.5		25.3

Non-capitalizable software development costs are included in costs and expenses and the amortization of capitalized software development costs are included in depreciation and amortization expense in the Consolidated Statement of Income.