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Property and equipment, net
 9 Months Ended
Sep. 30, 2016
Property and equipment, net  
Property and Equipment

7.    Property and equipment, net

 

Property and equipment, net consists of the following:

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

 

    

2016

    

2015

 

 

 

 

(in thousands)

 

 

Office equipment

    

$
9,189

 

$
6,753

 

 

Laboratory equipment

 

 
35,407

    

 
31,296

 

 

Computer equipment

 

 
35,095

 

 
22,491

 

 

Land

 

 
3,825

 

 

 —

 

 

Building and leasehold improvements

 

 
116,436

 

 
70,729

 

 

 

 

 
199,952

 

 
131,269

 

 

Less accumulated depreciation and amortization

 

 
(48,010)

 

 
(45,263)

 

 

Property and equipment, net

 

$
151,942

 

$
86,006

 

 

 

In April 2016, we completed our purchase of the previously leased land and building comprising approximately 190,000 square feet of laboratory and office space located in Wilmington, Delaware.  We previously accounted for the lease as a direct financing arrangement.  In total, upon completion of the purchase, we paid $81.3 million, including closing costs, for the purchase of the land and building and our direct financing obligation related to the lease was relieved. We recorded the difference between the amount paid for the purchase of the land and building ($81.3 million) and the remaining direct financing obligation on the purchase date ($45.9 million) as property and equipment. A total of $3.8 million was allocated to land and the remaining $31.6 million was allocated to buildings and leasehold improvements, which we estimated using the assistance of a third party valuation specialist. The land is not being amortized and we are depreciating the building over its estimated useful life of 40 years. In addition, the restricted investments related to the direct financing lease were released upon closing of the agreement of sale. 

 

In September 2016, we entered into two agreements to purchase land and two buildings at 1701 Augustine Cut-off in Wilmington, Delaware for approximately $7.9 million. Pursuant to the terms of the Agreements, we have up to a 120 day due diligence period to review specified documents and perform building inspections prior to closing.  The closing date is to be no later than 30 days after the due diligence period.