Property, Plant and Equipment

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

6. Property, Plant and Equipment

Property, plant and equipment, net consisted of the following:


	As of September 30,		As of December 31,		Useful Life
	2023		2022

	(In thousands)				(In years)
Furniture and fixtures	$	17,204	$	16,494	5
Computer and office equipment	16,215		14,160		2 to 10
Telecommunications equipment	79,925		80,251		5 to 7
Leasehold improvements	79,683		6,410		5 to 20
Software	10,822		7,051		3
Internal-use software development	31,139		23,677		4
Automobile	526		665		3
Land	27,636		23,090		Indefinite
Land Improvements	1,065		—		20
Total cost	264,215		171,798
Less—accumulated depreciation	(87,435)		(72,045)
Total property, plant and equipment, net	$	176,780	$	99,753

The Company capitalized $3.4 million and $8.4 million of software development costs for the three and nine months ended September 30, 2023, respectively, and $0.9 million and $2.1 million for the three and nine months ended September 30, 2022, respectively.

Amortization expense related to capitalized software development costs was $0.8 million and $2.2 million for the three and nine months ended September 30, 2023, respectively, and $0.6 million and $1.6 million for the three and nine months ended September 30, 2022, respectively. As of September 30, 2023, unamortized implementation costs related to cloud computing arrangements were $0.2 million, of which $0.1 million were included in prepaid expenses and other current assets and $0.1 million were included in other long-term assets.

The Company leases automobiles under leases accounted for as finance leases, which expire on various dates between 2024 and 2026. As of September 30, 2023, cost and accumulated depreciation of the assets under finance leases recorded by the Company were $0.5 million and $0.3 million, respectively.

The Company recognized depreciation expense, which includes amortization of capitalized software development costs, as follows:


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022

	(In thousands)
Cost of revenue	$	4,056	$	3,403	$	11,790	$	10,141
Research and development	1,199		610		2,461		1,767
Sales and marketing	905		346		1,486		1,027
General and administrative	487		302		990		913
Total depreciation expense	$	6,647	$	4,661	$	16,727	$	13,848