Property, Equipment and Software
|9 Months Ended|
Sep. 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 September 30, 2015 and December 31, 2014:
Depreciation and amortization expense for property, equipment and purchased software was $5.0 million and $5.1 million for the three months ended, and $15.2 million and $13.9 million for the nine months ended September 30, 2015 and 2014, respectively. This includes amortization related to assets acquired through capital leases.
The carrying amount of capitalized software development costs was $39.0 million and $32.5 million and related accumulated amortization totaled $13.0 million and $10.7 million at September 30, 2015 and December 31, 2014, respectively. Amortization expense related to capitalized software development costs totaled $0.9 million and $0.4 million for the three months ended, and $2.3 million and $1.1 million for the nine months ended September 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 significant product enhancement. During the nine months ended September 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 $0.5 million and $1.3 million during the three and nine months ended September 30, 2015 related to these costs. The impairment charges are included in "Product development" in the accompanying Condensed Consolidated Statements of Operations. No impairments were recognized during the same periods in 2014.
During the nine months ended September 30, 2015, we modified or terminated certain operating lease agreements for office space prior to the end of the applicable lease term. We recognized an impairment charge of zero and $1.5 million during the three and nine months ended September 30, 2015, respectively, related to leasehold improvements associated with a modified lease. The impairment charge is included in the line "General and administrative" in the accompanying Condensed Consolidated Statements of Operations. During the three and nine months ended September 30, 2015, we also disposed of fixed assets with a net carrying value of $0.2 million and $0.5 million, respectively. We recognized a net loss of $0.2 million during the three and nine months ended September 30, 2015, related to these disposals. See additional discussion of these changes in Note 8.
The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.
Reference 1: http://www.xbrl.org/2003/role/presentationRef