Property and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment

6. Property and Equipment

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

	At December 31,
	2018			2017
Computers, software, machinery and equipment	$	80,132		$	79,671
Leasehold improvements		12,579			11,886
Furniture and fixtures		8,501			8,498
Building and improvements		28,310			28,272
Land		17,959			17,959
Software development and other equipment in progress		6,092			4,369
Subtotal		153,573			150,655
Less: Accumulated depreciation and amortization		(84,287	)		(79,104	)
Property and equipment, net	$	69,286		$	71,551

We capitalized interest costs of approximately $175,000 and $86,000 in 2018 and 2017, respectively, relating to internally developed software costs during development. Depreciation and amortization expense for property and equipment, including fixed assets under capital leases, for the years ended December 31, 2018, 2017 and 2016 totaled $10.4 million, $10.1 million and $9.9 million.

In January 2017, we completed the purchase of real property in Woodridge, Illinois for approximately $3.1 million in cash. The real property includes approximately 29,344 square feet of office space.

Throughout 2018 and 2017, we entered into capital lease schedules with a bank totaling approximately $2.5 million and $1.3 million, respectively. The capital leases are primarily related to the buildout of the data center in Roswell, Georgia, the data center we constructed in New Albany, Ohio, various network equipment and the addition of SAP software licenses. The capital lease schedules entered into in 2018 and 2017 have terms ranging from one to five years. See Note 10 below for information related to capital lease obligations. At December 31, 2018, we had a total of $3.4 million under our capital lease obligations, of which $1.3 million was included as part of “Accrued expenses and other current liabilities” and $2.1 million was included as part of “Other long-term liabilities” on our Consolidated Balance Sheets. At December 31, 2017, we had a total of $1.9 million under our capital lease obligations, of which $0.6 million was included as part of “Accrued expenses and other current liabilities” and $1.3 million was included as part of “Other long-term liabilities” on our Consolidated Balance Sheets.

We have been in the process of upgrading our ERP systems due to the discontinued third party support of certain of our aged legacy systems, our changing IT needs when considering the transitioning state of our business from our origins towards becoming a leading IT solution provider and the ongoing desire to integrate multiple systems upon which we currently operate as a result of multiple acquisitions. In October 2015, our management selected, and our board of directors approved, the adoption of the SAP platform (that came with the acquisition of En Pointe) to be the platform to which we would migrate all legacy systems. We have made significant progress in the configuration, implementation and successful migration of a large number of our customers to our new ERP platform. We will continue to make progress throughout the remainder of 2019. We currently expect to have the vast majority of our business transitioned to the new platform by mid-2019 with a total expected capitalized cost of under $5 million.