Etsy 2015 Annual Report Download - page 92
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Etsy, Inc.
Notes to Consolidated Financial Statements
Property and equipment consisted of the following as of the dates indicated (in thousands):
Computer equipment 3 years
$ 16,876
$ 27,054
Furniture and equipment 2 - 4 years
1,987
1,959
Software 1 - 3 years
1,146
1,427
Leasehold improvements Shorter of life of asset or lease term
3,134
8,097
Construction in progress (1) Not applicable
51,796
71,106
Website development 3 years
31,156
33,469
106,095
143,112
Less: Accumulated amortization and depreciation
30,557
38,091
$ 75,538
$ 105,021
(1) The Company capitalizes construction in progress and records a corresponding long-term liability for build-to-suit lease arrangements where it is considered the owner,
for accounting purposes, during the construction period.
Depreciation and amortization expense on property and equipment was $12.1 million, $15.7 million and $16.3 million for the years ended December 31,
2013, 2014 and 2015, respectively, which includes amortization expense for equipment acquired under capital leases of $1.2 million, $1.5 million and $3.8
million for the years ended December 31, 2013, 2014 and 2015, respectively. The gross balance of leased equipment as of December 31, 2014 and 2015 was
$6.0 million and $17.2 million, respectively. The related accumulated amortization of equipment under capital leases was $1.2 million and $4.6 million at
December 31, 2014 and 2015, respectively.
The following table summarizes capitalized website development and internal-use software activities during the periods indicated (in thousands):
Balance as of the beginning of the period $ 23,897
$ 31,156
Additions to website development, excluding stock-based compensation 8,281
9,719
Additions to website development—stock-based compensation 190
463
Less: Retirements 1,212
7,869
31,156
33,469
Less: Accumulated amortization 18,968
19,676
$ 12,188
$ 13,793
For the years ended December 31, 2013, 2014 and 2015, the Company recorded amortization expense relating to capitalized website development and
internal-use software of $6.3 million, $8.1 million and $7.3 million, respectively. The loss on write-off for website development and internal-use software
assets that were retired during the years ended December 31, 2013, 2014 and 2015 was $0.7 million, $0.1 million and $1.3 million, respectively.
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