5. Property and equipment
Property and equipment of our continuing operations consists of the following:
|
| | | | | | | |
| December 31, |
(in millions) | 2013 | | 2012 |
Land and buildings | $ | 215.8 |
| | $ | 216.4 |
|
Furniture | 71.6 |
| | 66.6 |
|
Equipment(1) | 707.5 |
| | 542.5 |
|
Computer software | 1,582.3 |
| | 1,321.3 |
|
Leasehold improvements | 173.4 |
| | 179.1 |
|
Total property and equipment | 2,750.6 |
| | 2,325.9 |
|
Less accumulated depreciation(1) | (1,091.7 | ) | | (693.8 | ) |
Property and equipment, net | $ | 1,658.9 |
| | $ | 1,632.1 |
|
(1) Includes gross assets of $58.1 million and accumulated depreciation of $5.5 million related to capital lease assets as of December 31, 2013.
Depreciation expense for our continuing operations in 2013, 2012 and 2011 was $428.8 million, $283.0 million and $98.6 million, respectively. Internally developed software, net of accumulated amortization, for our continuing operations was $619.9 million and $743.5 million at December 31, 2013 and 2012, respectively. We capitalized $62.9 million of internally developed software during 2013.
In November 2012, we entered into a four-year capital lease for equipment to be used in our Fair Lawn, New Jersey facility, with a commencement date of January 1, 2013. The assets obtained with the capital lease are included in the Equipment line disclosed in the table above. As of December 31, 2013, the capitalized lease obligation was $42.0 million (see Note 12 - Commitments and contingencies).
Under certain of our operating leases for facilities in which we operate home delivery and specialty pharmacies, we are required to remove improvements and equipment upon surrender of the property to the landlord and convert the facilities back to office space. Our asset retirement obligation for our continuing operations was $10.1 million and $4.9 million at December 31, 2013 and 2012, respectively.
In the first quarter of 2011, we ceased fulfilling prescriptions from our home delivery dispensing pharmacy in Bensalem, Pennsylvania. We are currently in the process of closing this facility, which is scheduled to be completed in 2014.
