Quarterly report pursuant to Section 13 or 15(d)

Property, Equipment and Software

v3.3.0.814
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:
 
September 30, 2015
 
December 31, 2014
 
(in thousands)
Leasehold improvements
$
21,796

 
$
22,943

Data processing and communications equipment
65,921

 
59,390

Furniture, fixtures and other equipment
17,344

 
16,254

Software
59,909

 
51,915

 
164,970

 
150,502

Less: Accumulated depreciation and amortization
(93,026
)
 
(77,886
)
Property, equipment and software, net
$
71,944

 
$
72,616


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.