Quarterly report pursuant to Section 13 or 15(d)

Property, Equipment and Software

Property, Equipment and Software
6 Months Ended
Jun. 30, 2013
Property, Equipment and Software

4. Property, Equipment and Software

Property, equipment and software consist of the following:


     June 30,     December 31,  
     2013     2012  
     (in thousands)  

Leasehold improvements

   $ 15,427      $ 11,859   

Data processing and communications equipment

     48,992        43,562   

Furniture, fixtures, and other equipment

     12,375        11,638   


     45,238        38,710   






     122,032        105,769   

Less: Accumulated depreciation and amortization

     (79,429     (73,282







Property, equipment and software, net

   $ 42,603      $ 32,487   







Depreciation and amortization expense for property, equipment and software was $3.3 million and $3.5 million for the three months ended, and $7.3 million and $6.9 million for the six months ended June 30, 2013 and 2012, respectively. This includes depreciation for assets purchased through capital leases.

As of April 1, 2013, we revised our estimated useful lives of our data processing equipment and internally developed software to more accurately reflect our expectation of the use of these assets. This resulted in a decrease in depreciation and amortization expense of $1.2 million, an increase of $0.7 million in net income, and an increase in basic and diluted earnings per share of $0.01 for the three and six month periods ended June 30, 2013.