Fixed Assets

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

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


(in thousands)	2021		2020
Software	$	259,586	$	196,139
Land, buildings, and building improvements	211,624		121,332
Equipment	42,295		37,426
Furniture and fixtures	21,694		20,998
Leasehold improvements	1,342		1,313
Projects in progress	34,569		47,277

Total fixed assets, gross	571,110		424,485
Less: Accumulated depreciation and amortization	(196,308)		(159,144)
Fixed assets, net	$	374,802	$	265,341

Software increased primarily due to internally developed software projects completed and placed in production related to providing commercial lines new product processing capabilities as well as mainframe and billing software.

On December 31, 2021, we purchased the home office properties from the Exchange at the current appraised value of $97.5 million in order to align the ownership interest of these facilities with the functions being performed at the home office campus which are mainly Indemnity's management operations. See Note 14, "Related Party". In 2020, the construction of a new office building serving as part of our principal headquarters was completed. The building was financed using a senior secured draw term loan credit facility. See Note 8, "Borrowing Arrangements". Interest capitalized during construction was $3.5 million and $3.4 million, for the years ended December 31, 2020 and 2019, respectively.

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

Depreciation and amortization of fixed assets totaled $37.2 million, $21.2 million and $16.8 million for the years ended December 31, 2021, 2020 and 2019, respectively, and is included in cost of operations - policy issuance and renewal services.