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PROPERTY, EQUIPMENT AND SOFTWARE, NET | 12 Months Ended
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Dec. 31, 2022
Property, Plant and Equipment [Abstract] |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | PROPERTY, EQUIPMENT AND SOFTWARE, NET The following summarizes property, equipment and software, net as of December 31, 2022 and 2021 (in thousands):
| December 31,
| 2022 |  | 2021
Furniture and fixtures and other | 3,384 |  |  | 5,524 |
Leasehold improvements | 18,428 |  |  | 23,576 |
Computer hardware and purchased software | 110,338 |  |  | 118,659 |
Internally-developed software (1) | 334,079 |  |  | 309,018 |
Total property, equipment and software, gross | 466,229 |  |  | 456,777 |
Less: accumulated depreciation and amortization | (409,498) |  |  | (383,196) |
Property, equipment and software, net | $ | 56,731 |  |  | $ | 73,581 |
(1)The net carrying amount of internally-developed software was $48.6 million and $54.7 million as of December 31, 2022 and 2021. We evaluated long-lived assets for impairment, due to the events described below, which indicated that the carrying amount of certain asset groups were not recoverable. The asset impairments were written down to fair value based on the discounted cash flow method under the income approach that uses Level 3 inputs. The significant estimates used in the discounted cash flow models are the risk-adjusted discount rates; forecasted revenue, cost of revenue and operating expenses; forecasted capital expenditures and working capital needs; weighted-average cost of capital; rates of long-term growth; and income tax rates. During the first quarter of 2022, we determined the impact to our business from the new variant of COVID-19 required us to evaluate our long-lived assets for impairment. Our interim quantitative assessment for the first quarter of 2022 did not identify any long-lived asset impairment. During the second quarter of 2022, we determined a downward revision of our forecast required us to evaluate our long-lived assets for impairment. As a result of our interim quantitative assessment, we recognized long-lived asset impairment related to certain asset groups within our International reporting unit. See details in the table below. During the fourth quarter of 2022, we determined a further downward revision of our forecast required us to evaluate our long-lived assets for impairment. As a result of our interim quantitative assessment, we recognized long-lived asset impairment related to certain asset groups within our International reporting unit. Additionally, during the fourth quarter of 2022, we determined that certain internally developed software was no longer in use. As a result, we recognized long-lived asset impairment related to internally developed software. See details in the table below. During the third quarter of 2021, we recognized long-lived asset impairments for certain leasehold improvements under our 2020 Restructuring Plan and during the first quarter 2020 for property, equipment and software, net under our 2020 Restructuring Plan. See details in the table below and Note 13, Restructuring and Related Charges, for more information. The following table summarizes impairment charges for property, equipment and software that are presented within Restructuring and related charges and Long-lived asset impairment on the Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020 (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Long-lived asset impairment: |  |  |  |  |
North America | $ | 753 |  |  | $ | — |  |  | $ | — |
International | 3,736 |  |  | — |  |  | 9,565 |
Long-lived asset impairment | 4,489 |  |  | — |  |  | 9,565 |
Restructuring and related charges: |  |  |  |  |
North America | — |  |  | 602 |  |  | — |
International | — |  |  | 268 |  |  | 5,613 |
Restructuring and related charges impairment | — |  |  | 870 |  |  | 5,613 |
Total property, equipment and software impairment | $ | 4,489 |  |  | $ | 870 |  |  | $ | 15,178 |
The following table summarizes impairment for long-lived assets by asset type for the years ended December 31, 2022, 2021 and 2020 (in thousands):
| Year Ended December 31,
Long-Lived Asset Category | 2022 |  | 2021 |  | 2020
Property, equipment and software, net |  |  |  |  |
Leasehold improvements | 1,747 |  |  | 870 |  |  | 8,419 |
Computer hardware | 1,498 |  |  | — |  |  | 2,842 |
Internally-developed software | 753 |  |  | — |  |  | 2,988 |
Other Property, equipment and software, net | 491 |  |  | — |  |  | 929 |
Total | $ | 4,489 |  |  | $ | 870 |  |  | $ | 15,178 |
Depreciation and amortization expense on property, equipment and software is classified as follows in the accompanying Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020 (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Service cost of revenue | $ | 32,554 |  |  | $ | 32,354 |  |  | $ | 28,443 |
Product cost of revenue | — |  |  | 378 |  |  | 9,434 |
Selling, general and administrative | 21,616 |  |  | 31,193 |  |  | 39,915 |
Total | $ | 54,170 |  |  | $ | 63,925 |  |  | $ | 77,792 |
The above amounts include amortization of internally-developed software of $44.2 million, $50.5 million and $58.8 million, and amortization expense on assets under finance leases of $0.5 million, $3.6 million and $6.7 million, for the years ended December 31, 2022, 2021 and 2020.

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- Definition The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 6 -URI https://asc.fasb.org/extlink&oid=126982197&loc=d3e99893-112916 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 7 -URI https://asc.fasb.org/extlink&oid=126982197&loc=SL120174063-112916 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 1 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126982197&loc=d3e99779-112916 + Details
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