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Property and equipment:
12 Months Ended
Dec. 31, 2012
Property and equipment:  
Property and equipment:

2. Property and equipment:

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

 
  December 31,  
 
  2012   2011  

Owned assets:

             

Network equipment

  $ 375,230   $ 363,287  

Leasehold improvements

    127,497     115,155  

System infrastructure

    71,769     64,463  

Software

    9,369     9,221  

Office and other equipment

    10,558     9,690  

Building

    1,471     1,440  

Land

    125     122  
           

 

    596,019     563,378  

Less—Accumulated depreciation and amortization

    (472,024 )   (438,298 )
           

 

    123,995     125,080  

Assets under capital leases:

             

IRUs

    293,210     272,669  

Less—Accumulated depreciation and amortization

    (106,030 )   (89,771 )
           

 

    187,180     182,898  
           

Property and equipment, net

  $ 311,175   $ 307,978  
           

        Depreciation and amortization expense related to property and equipment and capital leases was $62.4 million, $59.7 million and $56.5 million, for the years ended December 31, 2012, 2011 and 2010, respectively.

Capitalized construction costs

        The Company capitalizes the compensation cost of employees directly involved with its construction activities. In 2012, 2011 and 2010, the Company capitalized compensation costs of $7.2 million, $7.1 million and $5.9 million respectively. These amounts are included in system infrastructure costs.

Asset impairment

        In 2010, the Company recorded an impairment charge for certain property and equipment that was no longer in use totaling $0.6 million.