Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

Property and Equipment, Net
3 Months Ended
Mar. 31, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Property and equipment, net consisted of the following:
  March 31, December 31,
  Estimated Useful Life 2022 2021
(in thousands)
Computer equipment and software 3 years $ 73,142  $ 72,289 
Leasehold improvements Shorter of the lease term or useful life of the asset 43,970  43,544 
Leased data servers 3 years 13,044  590 
Office furniture and fixtures
3-7 years
12,286  12,214 
Office equipment and other
3-5 years
8,193  7,973 
Building and building improvements
7-39 years
2,729  2,729 
Land Not applicable 940  940 
    154,304  140,279 
Less: accumulated depreciation and amortization (91,456) (90,064)
Total property and equipment, net $ 62,848  $ 50,215 
During the three months ended March 31, 2022, the Company entered into an arrangement with a third party cloud service provider for the use of dedicated servers to migrate its infrastructure to the cloud. As the terms of the arrangement convey a finance lease under FASB Topic 842 - Leases (“ASC 842”), the Company accounts for those dedicated servers as leased assets when the lease term commences. The Company accounts for each lease and any non-lease components associated with that lease as a single lease component for all asset classes. The leased dedicated servers are presented as a component of property and equipment, net in the condensed consolidated balance sheets as of March 31, 2022. To take advantage of the favorable savings programs offered by the cloud service provider, the Company prepaid the lease payments and therefore does not have a lease liability recorded for the leased assets. Gross property and equipment under finance leases as of March 31, 2022 was $13.0 million with accumulated depreciation of $1.1 million. Finance lease activity as of and for the year ended December 31, 2021 was not material.

During the three months ended March 31, 2022 and 2021, the Company retired property and equipment that was no longer in service with historical costs of $4.0 million and $3.1 million, respectively. Retirements within each segment were immaterial.

Gains and losses on asset retirements during the three months ended March 31, 2022 and 2021 were not material.
Depreciation and amortization expense was as follows:
  Three Months Ended
  March 31,
  2022 2021
(in thousands)
Depreciation and amortization expense $ 5,604  $ 5,643