Quarterly report pursuant to Section 13 or 15(d)

Property, Equipment and Software

v3.5.0.2
Property, Equipment and Software
6 Months Ended
Jun. 30, 2016
Property, Plant and Equipment [Abstract]  
Property, Equipment and Software
Property, Equipment, and Software
Property, equipment, and software consisted of the following at June 30, 2016 and December 31, 2015:
 
June 30, 2016
 
December 31, 2015
 
 
 
Leasehold improvements
$
54,235

 
$
26,138

Data processing and communications equipment
72,905

 
67,871

Furniture, fixtures, and other equipment
22,927

 
18,253

Software
77,335

 
68,972

 
227,402

 
181,234

Less: Accumulated depreciation and amortization
(112,645
)
 
(99,036
)
Property, equipment, and software, net
$
114,757

 
$
82,198


Depreciation and amortization expense for property, equipment, and purchased software was $6.5 million and $5.2 million for the three months ended, and $11.9 million and $10.2 million for the six months ended June 30, 2016 and 2015, respectively. This includes amortization related to assets acquired through capital leases.
The carrying amount of capitalized software development costs was $47.5 million and $41.2 million at June 30, 2016 and December 31, 2015, respectively. Total accumulated amortization related to these assets was $16.5 million and $14.0 million at the respective dates. Amortization expense related to capitalized software development costs totaled $1.4 million and $0.8 million for the three months ended and $2.6 million and $1.5 million for the six months ended June 30, 2016 and 2015, respectively.
We review in-progress software development projects on a periodic basis to ensure completion is assured and the development work will be placed into service as a new product or significant product enhancement. During the six months ended June 30, 2015, we identified certain projects for which software development work had ceased and it was determined the projects would be discontinued. Our analysis of the capitalized costs resulted in the conclusion that they had no value outside of the respective projects for which they were originally incurred. As a result, we recognized an impairment loss of $0.2 million and $0.8 million during the three and six months ended June 30, 2015. The impairment charges are included in “Product development” in the accompanying Condensed Consolidated Statements of Operations. No impairments of software development projects were identified during the three and six months ended June 30, 2016.
During the second quarter of 2015, we modified or terminated certain operating lease agreements for office space prior to the end of the applicable lease term. As a result of these changes, we recognized an impairment charge of $1.5 million related to leasehold improvements associated with a modified lease agreement. The impairment charge is included in the line “General and administrative” in the accompanying Condensed Consolidated Statements of Operations. During the three months ended June 30, 2015, we also disposed of fixed assets with a net carrying value of $0.3 million related to these offices by sale or other means.