Property and Equipment

12 Months Ended

Dec. 31, 2012

NOTE 10. Property and Equipment

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


	December 31,
	2012			2011
Land	$	9,855		$	—
Building and improvements		72			72
Leasehold improvements		4,621			2,515
Computer equipment and software		65,515			59,292
Furniture and equipment		9,001			8,534
Transportation equipment		162,461			136,691
Construction in process		6,142			1,101

		257,667			208,205
Less: Accumulated depreciation and amortization		(100,083	)		(83,618	)

Property and Equipment, net	$	157,584		$	124,587

The increase in transportation equipment to $162.5 million in 2012 from $136.7 million in 2011 was due primarily to the addition of containers.

Included in the transportation equipment is a capital lease obligation entered into for $26.4 million in 2011. The balances as of December 31, 2012 and 2011, net of accumulated amortization, were $22.6 million and $25.3 million, respectively.

Depreciation and amortization expense related to property and equipment was $19.6 million, $14.8 million and $8.0 million for 2012, 2011 and 2010, respectively, which includes $2.6 million and $1.1 million of amortization expense associated with a capital lease for 2012 and 2011, respectively. This amortization expense is included in transportation costs. Transportation equipment depreciation is included in transportation costs.

During our review of fixed asset lives, we determined that the useful life of certain transportation equipment should be changed from 10 years to 15 years. As a result, depreciation expense in future periods will be impacted.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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