Property and Equipment, net

6 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

Property and equipment, net consists of the following:



	Estimated useful lives	As of
	(Years)	June 30, 2019			December 31, 2018
Owned Assets:
Network equipment and computers	3-5	$	91,514		$	85,921
Software	3-5	73,308			69,752
Leasehold improvements	3-8	43,577			39,533
Office furniture and equipment	3-8	22,034			20,097
Motor vehicles	2-5	723			635
Buildings	30	1,152			1,140
Land	—	754			746
Capital work in progress	—	14,637			11,026
		247,699			228,850
Less: Accumulated depreciation and amortization		(170,316		)	(155,798		)
		$	77,383		$	73,052
Right-of-use assets under finance leases:
Leasehold improvements		$	798		$	778
Office furniture and equipment		348			53
Motor vehicles		742			628
		1,888			1,459
Less: Accumulated depreciation and amortization		(1,188		)	(1,001		)
		$	700		$	458
Property and equipment, net		$	78,083		$	73,510

Capital work in progress represents advances paid towards acquisition of property and equipment and costs incurred to develop software not yet ready to be placed in service.

The depreciation and amortization, excluding amortization of acquisition-related intangibles, recognized in the unaudited consolidated statements of income was as follows:



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Depreciation and amortization	$	7,198	$	6,821	$	15,337	$	13,378

The depreciation and amortization set forth above includes the effect of foreign exchange gain/(loss) upon settlement of cash flow hedges, amounting to $56 and $42 for the three months ended and $113 and $193 for the six months ended June 30, 2019 and 2018, respectively. Refer Note 17 to the unaudited consolidated financial statements for further details.

Internally developed software costs, included under Software, was as follows:



	As of
	June 30, 2019			December 31, 2018
Cost	$	10,522		$	8,783
Less : Accumulated amortization	(3,449		)	(2,393		)
Internally developed software, net	$	7,073		$	6,390

During the three and six months ended June 30, 2019, the Company performed an impairment test of its long-lived assets of its Health Integrated business. Based on the results, the long-lived assets carrying value exceeded their fair value. The primary factor contributing to a reduction in the fair value is the commencement of the wind down of the Health Integrated business, and an anticipated reduction to the Company's estimated future cash flows. As a result of this analysis, the Company recognized impairment charges of $951 and $2,178 during the three and six months ended June 30, 2019, respectively, to write down the carrying value of property and equipment to its fair value. This impairment charge was recorded in the unaudited consolidated statements of income under "Impairment and restructuring charges". Refer Note 24 to the unaudited consolidated financial statements for further details.

The amortization expense on internally developed software recognized in the unaudited consolidated statements of income was as follows:



	Three months ended June 30				Six months ended June 30
	2019		2018		2019		2018
Amortization expense	$	559	$	254	$	1,206	$	472