Shutterfly 2014 Annual Report Download - page 87

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Other Assets
December 31,
2014 2013
(in thousands)
Other assets ............................................... $ 13,976 $ 15,412
Other assets includes the long-term portion of intellectual property prepaid royalties, the long-term
portion of issuance costs related to the Company’s 0.25% Convertible Notes, the long-term portion of
prepaid service contracts, and deposits on long-term leases and other contracts.
Property and Equipment
December 31,
2014 2013
(in thousands)
Computer equipment and software .............................. $ 159,370 $ 140,868
Manufacturing equipment ..................................... 119,495 61,342
Capitalized software and website development costs .................. 89,311 66,196
Buildings under build-to-suit leases .............................. 39,307 16,452
Leasehold improvements ...................................... 20,876 17,702
Rental equipment ........................................... 14,591 11,943
Furniture and fixtures ........................................ 10,683 8,391
453,633 322,894
Less: Accumulated depreciation and amortization .................... (211,891) (167,167)
Net property and equipment ................................... $ 241,742 $ 155,727
Building value of $39.3 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 7 — Commitments and Contingencies.’’
Included within Manufacturing equipment is approximately $44.2 million and $6.8 million of capital
lease obligations for various pieces of manufacturing facility equipment in 2014 and 2013, respectively.
Accumulated depreciation of assets under capital lease totaled $3.1 million at December 31, 2014
compared to $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 $64.9 million, $43.9 million, and $29.4 million for the
years ended December 31, 2014 , 2013 and 2012, respectively.
Total capitalized software and website development costs, net of accumulated amortization totaled
$35.7 million and $27.8 million at December 31, 2014 and 2013, respectively. Amortization of capitalized
costs totaled approximately $14.9 million, $10.8 million and $8.4 million for the years ended December 31,
2014, 2013 and 2012, respectively.
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