Go Daddy 2015 Annual Report Download - page 94

Table of Contents
GoDaddy Inc.
Notes to Consolidated Financial Statements
(In millions, except share amounts which are reflected in thousands and per share amounts)
We classify our short-term investments as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may
sell our short-term investments at any time for use in current operations or for other purposes, such as consideration for acquisitions, even if they have not yet
reached maturity. As a result, we classify our short-term investments, including investments with maturities beyond 12 months, as current assets.
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are carried at invoiced amounts. We evaluate our receivables for collectability and record an allowance for doubtful accounts as
necessary. For all periods presented, the allowance was not material.
Registry Deposits
Registry deposits represent amounts on deposit with, or receivable from, various domain name registries to be used by us to make payments for future
domain registrations or renewals.
Prepaid Domain Name Registry Fees
Prepaid domain name registry fees represent amounts charged by a registry at the time a domain is registered or renewed. These amounts are amortized to
cost of revenue over the same period revenue is recognized for the related domain registration contract.
Property and Equipment
Property and equipment is stated at cost. Depreciation, including for assets acquired under capital leases, is recorded over the shorter of the estimated useful
life or the lease term of the applicable assets using the straight-line method beginning on the date an asset is placed in service. We regularly evaluate the estimated
remaining useful lives of our property and equipment to determine whether events or changes in circumstances warrant a revision to the remaining period of
depreciation. Maintenance and repairs are charged to expense as incurred.
Property and equipment consisted of the following:
Estimated
Useful Lives
December 31,
2015
2014
Land
Indefinite
$ 9.0
$ 9.0
Computer equipment
3 years
248.7
209.5
Buildings, including improvements
2-25 years
112.8
102.5
Software
3 years
28.5
24.6
Leasehold improvements
Lesser of useful life or remaining
lease term
34.1
28.0
Other
1-7 years
9.8
7.6
Building acquired under lease financing obligation
40 years
18.1
18.1
Total property and equipment
461.0
399.3
Less accumulated depreciation and amortization
(236.0)
(178.4)
Property and equipment, net
$ 225.0
$ 220.9
The gross carrying amount of property and equipment includes $31.7 million and $20.6 million of computer equipment under capital leases as of
December 31, 2015 and 2014 , respectively. The accumulated depreciation of the leased computer equipment was $16.1 million and $5.9 million as of
December 31, 2015 and 2014 , respectively.
Depreciation and amortization expense related to property and equipment, including amounts related to assets under capital leases, was $61.3 million ,
$55.6 million and $50.2 million during 2015 , 2014 and 2013 , respectively.
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