Property and Equipment

12 Months Ended

Dec. 31, 2011

Property and Equipment [Abstract]

Property and Equipment

Property and Equipment:

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

	December 31,						Estimated Useful Lives in Years
	2011			2010
Computer and networking equipment	$	561,952		$	492,685		3
Purchased software	31,388			29,885			3
Furniture and fixtures	14,166			12,770			5
Office equipment	5,676			4,792			3
Leasehold improvements	36,358			29,914			2-12
Internal-use software	222,914			177,918			2
	872,454			747,964
Accumulated depreciation and amortization	(579,411		)	(492,035		)
	$	293,043		$	255,929

Depreciation and amortization expense on property and equipment and capitalized internal-use software for the years ended December 31, 2011, 2010 and 2009 were $150.8 million, $126.6 million and $105.8 million, respectively.

During the years ended December 31, 2011 and 2010, the Company wrote off $61.7 million and $14.9 million, respectively, of long-lived asset costs, with accumulated depreciation and amortization costs of $59.9 million and $14.5 million, respectively. These write-offs were primarily related to computer and networking equipment no longer in use.

During the years ended December 31, 2011, 2010 and 2009, the Company capitalized $42.6 million, $32.8 million and $27.2 million, respectively, of external consulting fees and payroll and payroll-related costs for the development and enhancement of internal-use software applications. Additionally, during the years ended December 31, 2011, 2010 and 2009, the Company capitalized $7.5 million, $7.8 million and $6.3 million, respectively, of non-cash stock-based compensation related to employees who developed and enhanced internal-use software applications. During the years ended December 31, 2011 and 2010, the Company wrote off $4.6 million and $2.3 million, respectively, of internal-use software costs, with accumulated amortization costs of $3.9 million and $2.3 million, respectively. Such internal-use software is used by the Company primarily to operate, manage and monitor its deployed network and deliver its services to customers.

The following table summarizes capitalized internal-use software costs (in thousands):

	December 31,
	2011			2010
Gross costs capitalized	$	230,938		$	181,376
Less: cumulative impairments	(8,024		)	(3,458		)
	222,914			177,918
Less: accumulated amortization, net of impairments	(152,140		)	(117,936		)
Net book value of capitalized internal-use software	$	70,774		$	59,982