Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net

v3.22.4
Property and Equipment, Net
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
 
Property and equipment, net consisted of the following:
 
    December 31,
  Estimated Useful Life 2022 2021
(in thousands)
Cost:
Computer equipment and software 3 years $ 66,639  $ 72,289 
Leasehold improvements Shorter of the lease term or useful life of the asset 36,158  43,544 
Leased data servers 3 years 19,273  590 
Office furniture and fixtures
3-7 years
 10,796  12,214 
Office equipment and other
3-5 years
 11,563  7,973 
Building and building improvements
7-39 years
 2,729  2,729 
Land Not applicable 940  940 
  148,098  140,279 
Less: accumulated depreciation and amortization (85,655) (90,064)
Total property and equipment, net $ 62,443  $ 50,215 
During the year ended December 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 ASC 842, the Company accounts for those dedicated servers as leased assets when the lease term commences. The leased dedicated servers are presented as a component of property and equipment, net in the consolidated balance sheets as of December 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. Amortization of the right-of-use assets totaled $4.9 million for the year ended December 31, 2022. Finance lease activity as of and for the year ended December 31, 2021 was not material.

During the year ended December 31, 2022 and 2021, the Company retired property and equipment that was no longer in service for the Envestnet Wealth Solutions segment with an historical cost of $20.0 million and $12.7 million, respectively. During the year ended December 31, 2022 and 2021, the Company retired property and equipment that was no longer in service for the Envestnet Data & Analytics segment with an historical cost of $10.4 million and $2.4 million, respectively.

The following table presents the cost amounts and related accumulated depreciation written off by category:

  Year Ended December 31, 2022 Year Ended December 31, 2021
    Accumulated   Accumulated
  Cost Depreciation Cost Depreciation
(in thousands)
Computer equipment and software $ 15,887  $ (14,947) $ 10,936  $ (10,838)
Leasehold improvements 2,442  (1,209) 197  (178)
Office furniture and fixtures 660  (418) 1,702  (1,646)
Office equipment and other 11,467  (8,785) 2,227  (1,915)
Total property and equipment retirements $ 30,456  $ (25,359) $ 15,062  $ (14,577)
 
Depreciation and amortization expense was as follows:

  Year Ended December 31,
  2022 2021 2020
(in thousands)
Depreciation and amortization expense $ 21,688  $ 20,577  $ 21,432