The following tables set forth our key financial and operating metrics for our subscription business for the periods ended December 31, 2015, 2014 and 2013 and for each of the last eight fiscal quarters. In 2015, the prior period financial data and metrics have been recast to reflect the movement of certain pets from the subscription business segment to the other business segment. Refer to “Management’s Discussion and Analysis-Basis of Presentation” for further details. Additionally, we have modified our non-GAAP financial measures to include net acquisition cost, which was defined as acquisition cost in prior periods, and modify the definition of acquisition cost used in previous periods to more closely align with how management has begun to view and discuss our business. The calculation of our key metric, average pet acquisition cost, did not changed.
Investment in pet acquisition. We have made and plan to continue to make significant investments to grow our member base. Our net acquisition cost and the number of new members we enroll depends on a number of factors, including the amount we elect to invest in sales and marketing activities in any particular period in the aggregate and by channel, effectiveness of our sales execution and marketing initiatives, changes in costs of media, the mix of our sales and marketing expenditures and the competitive environment. Our average pet acquisition cost has in the past significantly varied and in the future may significantly vary from period to period based upon specific marketing initiatives and the actual or expected relationship to LVP. For example, veterinary trade show costs may increase our average pet acquisition costs (historically, during the first quarter of each year) and the timing of our Territory Partner conference may increase our average pet acquisition cost in a given period (historically, during the fourth quarter of each year). We also regularly test new member acquisition channels and marketing initiatives, which may be more expensive than our traditional marketing channels and increase our average acquisition costs. We plan to expand the number of Territory Partners and continue testing new member acquisition channels and marking initiatives, which is likely to increase our average pet acquisition cost. We continually assess our sales and marketing activities by monitoring the ratio of LVP to PAC.
In 2015, the prior period financial data and metrics have been recast to reflect the movement of certain pets from the subscription business segment to the other business segment. Refer to “Management’s Discussion and Analysis-Basis of Presentation” for further details.
Year ended December 31, 2015 compared to year ended December 31, 2014. Total revenue increased by $31.1 million to $147.0 million for the year ended December 31, 2015, or 27%. Revenue from our subscription business segment increased by $29.9 million to $133.4 million for the year ended December 31, 2015, or 29%. The increase in subscription business revenue was primarily due to a 27% increase in total subscription pets enrolled as of December 31, 2015 compared to December 31, 2014. Adjusted revenue per pet increased from $44.14 to $45.04, or 2%, for the same period due to increases in pricing to cover the increased cost of veterinary care. The impact of the increase was partially offset by an approximate $4.8 million impact of foreign exchange rates on our Canadian revenue. Revenue from our other business segment increased $1.2 million to $13.6 million for the year ended December 31, 2015, or 9%, due to an increase in enrolled pets in this segment.
Year ended December 31, 2014 compared to year ended December 31, 2013. Technology and development expenses increased $5.0 million to $9.9 million for the year ended December 31, 2014, or 103%. The increase was primarily due to a $4.2 million increase in compensation expense and related costs as a result of increased headcount as we made investments in new technology infrastructure, and a $0.5 million increase in system hosting to support our infrastructure growth. In addition. $0.2 million of the total increase was due to software licenses and fees as a result of our company growth. Total expenses, net of capitalization, in technology related to claims processing improvements were $4.4 million in 2014 and $1.4 million in 2013.
Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets ranging from three to five years. Leasehold improvements are depreciated over the less of their expected useful life or the remaining term of the related lease.
In November 2012, the Company began writing one-year pet insurance policies for an unaffiliated general agent. Revenue during 2015, 2014 and 2013 totaled $9.9 million, $10.0 million and $7.0 million, respectively, and deferred revenue relating to this arrangement at December 31, 2015 and 2014 was $5.5 million and $5.1 million, respectively.
Investment securities: Long-term investments classified as available-for-sale are measured using quoted market prices when quoted market prices are available. If quoted market prices in active markets for identical assets are not available to determine fair value, then the Company uses quoted prices of similar instruments and other significant inputs derived from observable market data obtained from third-party data providers. Short-term investments are carried at amortized cost and the fair value is disclosed in Note 3. Fair value is determined in the same manner as available-for-sale securities and is considered a Level 2 measurement.
Activity in the claims reserve is summarized as follows (in thousands):
Borrowings on the revolving line of credit were limited to the lesser of $20.0 million in 2015 and 2014, and the total amount of cash and securities held by American Pet Insurance Company (APIC), less up to $3.0 million and $0.5 million, respectively, for obligations the Company may have outstanding for other ancillary services in the future. During 2015, the Company repaid its borrowings under this facility, and as of December 31, 2015, had no outstanding amounts under this facility. As of December 31, 2014, the Company’s outstanding borrowings under this facility were $14.9 million.
Income (loss) before income taxes was as follows for the years ended December 31, 2015, 2014 and 2013 (in thousands):
The principal components of the Company’s deferred tax assets and liabilities were as follows (in thousands):