Shutterfly 2013 Annual Report Download - page 83

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Property and Equipment
December 31,
2013 2012
(in thousands)
Computer and manufacturing equipment .......................... $ 182,491 $ 135,181
Software ................................................. 19,719 17,342
Leasehold improvements ...................................... 17,702 11,009
Buildings under build-to-suit leases .............................. 16,452 6,372
Rental equipment ........................................... 11,943 —
Furniture and fixtures ........................................ 8,391 4,075
Capitalized software and website development costs .................. 66,196 49,013
322,894 222,992
Less: Accumulated depreciation and amortization .................... (167,167) (130,325)
Net property and equipment ................................... $ 155,727 $ 92,667
Building value of $16.5 million represents the estimated fair market value of buildings under
build-to-suit leases of which the Company is the ‘‘deemed owner’’ for accounting purposes only. See
‘‘Note 5 — Commitments and Contingencies.’’
Included within Computer and other equipment is approximately $6.8 million of capital lease
obligations for various pieces of manufacturing facility and computer equipment. Accumulated
depreciation of assets under capital lease totaled $0.8 million at December 31, 2013.
Rental equipment includes camera lenses, camera bodies, video equipment and other camera
peripherals which are rented through the BorrowLenses’ website.
Depreciation and amortization expense totaled $43.9 million, $29.4 million, and $22.3 million for the
years ended December 31, 2013, 2012 and 2011, respectively.
Total capitalized software and website development costs, net of accumulated amortization totaled
$27.8 million and $21.9 million at December 31, 2013 and 2012, respectively. Amortization of capitalized
costs totaled approximately $10.8 million, $8.4 million and $5.4 million for the years ended December 31,
2013, 2012 and 2011, respectively.
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