PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

5.     PROPERTY AND EQUIPMENT

Property and equipment consisted of the following (in thousands):

	December 31,
	2013			2012
Network equipment	$	189,763		$	129,168
Network equipment under capital lease		6,346			6,386
Furniture and equipment		19,194			17,955
Software		51,763			45,011
Leasehold improvements		319,119			279,219
Land		630			—
Buildings		1,395			—
Buildings under capital lease		56,440			43,325
Property and equipment, gross		644,650			521,064
Less: accumulated depreciation and amortization ($17,786 and $11,351 related to capital leases at December 31, 2013 and 2012, respectively)		(312,687	)		(272,969	)
	$	331,963		$	248,095

During 2013 and 2012, we determined that we would not use certain items and recorded an impairment charge of $0.5 million and $0.4 million, respectively, to developed software related to products and product support software primarily in our data center services segment. We include the impairment charge in “Exit activities, restructuring and impairments” in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2013 and 2012.

We summarize depreciation and amortization of property and equipment associated with direct costs of network, sales and services and other depreciation expense as follows (in thousands):

	Year ended December 31,
	2013		2012		2011
Direct costs of network, sales and services	$	44,799	$	33,019	$	36,040
Other depreciation and amortization		3,382		3,128		886
Subtotal		48,181		36,147		36,926
Amortization of acquired technologies		4,967		4,718		3,500
Total depreciation and amortization	$	53,148	$	40,865	$	40,426

We retired $8.1 million of assets with accumulated depreciation of $8.1 million during the year ended December 31, 2013, $8.5 million of assets with accumulated depreciation of $8.5 million during the year ended December 31, 2012 and $12.8 million of assets with accumulated depreciation of $12.7 million during the year ended December 31 2011. We capitalized an immaterial amount of interest for each of the three years ended December 31, 2013.