Shutterfly 2015 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2015 Shutterfly annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Property and Equipment
December 31,
2015 2014
(in thousands)
Computer equipment and software ........................................ $ 172,048 $ 159,370
Manufacturing equipment ............................................... 148,820 119,495
Capitalized software and website development costs .......................... 108,837 89,311
Buildings under build-to-suit leases ....................................... 56,468 39,307
Leasehold improvements ............................................... 21,519 20,876
Rental equipment ..................................................... 17,414 14,591
Furniture and fixtures .................................................. 11,351 10,683
536,457 453,633
Less: Accumulated depreciation and amortization ............................ (254,678) (211,891)
Net property and equipment ............................................. $ 281,779 $ 241,742
Building value of $56.5 million under build-to-suit leases 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 for further discussion of the Company’s build-to-suit leases.
Included within Manufacturing equipment is approximately $72.9 million and $44.2 million of capital lease
obligations for various pieces of manufacturing facility equipment in 2015 and 2014, respectively. Accumulated
depreciation of assets under capital lease totaled $14.1 million at December 31, 2015 compared to $3.1 million at
December 31, 2014.
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 $86.3 million, $64.9 million, and $43.9 million for the years
ended December 31, 2015, 2014 and 2013, respectively.
Total capitalized software and website development costs, net of accumulated amortization totaled $38.4
million and $35.7 million at December 31, 2015 and 2014, respectively. Amortization of capitalized costs totaled
approximately $18.7 million, $14.9 million and $10.8 million for the years ended December 31, 2015, 2014 and
2013, respectively.
87