Quarterly report pursuant to Section 13 or 15(d)

Property, Equipment and Software

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Property, Equipment and Software
6 Months Ended
Jun. 30, 2015
Property, Plant and Equipment [Abstract]  
Property, Equipment and Software
Property, Equipment and Software
Property, equipment and software consisted of the following as of June 30, 2015 and December 31, 2014:
 
June 30, 2015
 
December 31, 2014
 
(in thousands)
Leasehold improvements
$
21,371

 
$
22,943

Data processing and communications equipment
63,600

 
59,390

Furniture, fixtures and other equipment
17,611

 
16,254

Software
56,713

 
51,915

 
159,295

 
150,502

Less: Accumulated depreciation and amortization
(88,464
)
 
(77,886
)
Property, equipment and software, net
$
70,831

 
$
72,616


Depreciation and amortization expense for property, equipment and purchased software was $5.2 million and $4.6 million for the three months ended, and $10.2 million and $8.8 million for the six months ended June 30, 2015 and 2014, respectively. This includes amortization related to assets acquired through capital leases.
The carrying amount of capitalized software development costs was $37.0 million and $32.5 million and related accumulated amortization totaled $12.2 million and $10.7 million at June 30, 2015 and December 31, 2014, respectively. Amortization expense related to capitalized software development costs totaled $0.8 million and $0.3 million for the three months ended, and $1.5 million and $0.7 million during the six months ended June 30, 2015 and 2014, 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 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 abandoned. 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 related to these costs. The impairment charge is included in "Product development" in the accompanying Condensed Consolidated Statements of Operations. No impairments were recognized during the six months ended June 30, 2014.
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. See additional discussion of these changes in Note 8.