Fixed Assets

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Fixed Assets

Fixed Assets

The following table summarizes our fixed assets by category at December 31:

(in thousands)	2019			2018
Land, buildings, and building improvements	$	5,068		$	—
Leasehold improvements	1,313			617
Software	191,709			163,735
Equipment	14,546			15,075
Furniture, fixtures, and equipment	1,934			—
Projects in progress	22,992			10,392
Construction in progress	122,801			66,088
Total fixed assets, gross	360,363			255,907
Less: Accumulated depreciation and amortization	(138,984		)	(125,075		)
Fixed assets, net	$	221,379		$	130,832

In 2018, we sold the field offices we owned to the Exchange at the current independent appraised value in order to align the ownership interest of these facilities with the functions being performed at these locations, which are claims-related activities. We recognized a gain on the sale of $3.4 million, which is included in "Other income (expense)". See Note 15, "Related Party". The increase in land, buildings, and building improvements in 2019 resulted from the purchase of additional office space from a third party.

Software increased primarily related to mainframe software licenses and investments in data technology, as well as internally developed software projects completed and placed in production related to providing personal lines new product processing capabilities.

Projects in progress include certain computer software and software developments costs for internal use that are not yet subject to amortization.

Construction in progress includes a new office building that will serve as part of our principal headquarters. Capitalized interest included in construction in progress was $3.4 million and $2.1 million at December 31, 2019 and 2018, respectively. The building is expected to be completed in 2020 and is financed using a senior secured draw term loan credit facility. See Note 9, "Borrowing Arrangements".

Depreciation and amortization of fixed assets totaled $16.8 million, $13.4 million and $14.8 million for the years ended December 31, 2019, 2018 and 2017, respectively, and is included in cost of operations - policy issuance and renewal services.