Depreciation and amortization for all other property, equipment and capitalized software is primarily computed using the straight-line method over the estimated useful lives shown below as of December 31, 2025.
| | | | | |
| | Estimated Useful Lives |
| Furniture, fixtures and equipment | 4 to 5 years |
| |
| Computer software, including internal use computer software | 3 years |
| |
Below are the amounts of internal-use computer software capitalized within property, equipment and capitalized software and the related amortization expense incurred on all internal-use computer software during the years ended December 31:
| | | | | | | | | | | | | | | | | |
| (in millions) | 2025 | | 2024 | | 2023 |
| Gross amounts capitalized for internal-use computer software (inclusive of in-process amounts) | $ | 141.0 | | | $ | 143.0 | | | $ | 136.4 | |
| Amounts expensed for amortization of internal-use computer software | $ | 130.6 | | | $ | 109.7 | | | $ | 78.7 | |
Property, equipment and capitalized software, net consist of the following: | | | | | | | | | | | |
| | December 31, |
| (in millions) | 2025 | | 2024 |
| Furniture, fixtures and equipment | $ | 47.1 | | | $ | 51.1 | |
| Computer software, including internal-use software | 901.0 | | | 823.5 | |
| Leasehold improvements | 18.6 | | | 18.6 | |
| | | |
| Total | 966.7 | | | 893.2 | |
| Less: accumulated depreciation | (713.0) | | | (632.0) | |
| Total property, equipment and capitalized software | $ | 253.7 | | | $ | 261.2 | |
About PP&E Disclosures
The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.
Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.