Property and Equipment, Net

3 Months Ended

Mar. 31, 2015

Property Plant And Equipment [Abstract]

NOTE 5: PROPERTY AND EQUIPMENT, NET

Property and equipment, net consists of the following for the periods presented:

	March 31, 2015			December 31, 2014
	(in millions)
Capitalized software and website development	$	118		$	104
Leasehold improvements		42			40
Computer equipment		33			31
Furniture, office equipment and other		14			11
		207			186
Less: accumulated depreciation		(91	)		(77	)
Construction in progress (1)		110			86
Total	$	226		$	195

(1)

We capitalize construction in progress for build-to-suit lease agreements where we are considered the owner, for accounting purposes only, during the construction period. These amounts represent construction costs to date incurred by the landlord and the Company related to our future corporate headquarters in Needham, MA. During the three months ended March 31, 2015, we capitalized $4 million in non-cash construction costs which were incurred by the landlord, with a corresponding liability recorded in other long-term liabilities, and in addition, we capitalized $20 million in tenant improvements on our unaudited consolidated balance sheet, of which $13 million were paid in cash by the Company. Refer to “Note 12 – Commitments and Contingencies,” in the notes to our consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2014 for additional information on our future corporate headquarters lease.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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