Annual report pursuant to Section 13 and 15(d)

Property, Equipment and Software

v3.8.0.1
Property, Equipment and Software
12 Months Ended
Dec. 31, 2017
Property, Plant and Equipment [Abstract]  
Property, Equipment and Software
Property, Equipment, and Software
Property, equipment, and software consisted of the following at December 31, 2017 and 2016:
 
 
December 31,
 
 
2017
 
2016
 
 
(in thousands)
Leasehold improvements
 
$
59,179

 
$
51,242

Data processing and communications equipment
 
83,922

 
76,773

Furniture, fixtures, and other equipment
 
28,752

 
26,513

Software
 
107,924

 
86,983

Property, equipment, and software, gross
 
279,777

 
241,511

Less: Accumulated depreciation and amortization
 
(131,349
)
 
(111,083
)
Property, equipment, and software, net
 
$
148,428

 
$
130,428


Depreciation and amortization expense for property, equipment, and purchased software was $27.2 million, $24.5 million, and $20.6 million for the years ended December 31, 2017, 2016, and 2015, respectively.
The gross amount of capitalized software development costs was $73.4 million and $55.4 million and was carried net of accumulated amortization of $27.8 million and $19.8 million at December 31, 2017 and 2016, respectively. The weighted average amortization period for capitalized software development costs was 4.8 years at December 31, 2017. During the years ended December 31, 2017, 2016, and 2015, we capitalized $18.0 million, $13.7 million, and $10.5 million of software development costs, respectively. Amortization expense related to capitalized software development costs totaled $8.0 million, $5.8 million, and $3.3 million during the years ended December 31, 2017, 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 year ended December 31, 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 a loss of $1.4 million during the year ended December 31, 2015, related to the disposal of these assets. No impairments associated with software development projects were identified during 2017 and 2016.
During the years ended December 31, 2016 and 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 $1.5 million during the year ended December 31, 2015, related to leasehold improvements associated with a modified lease. No impairments of leasehold improvements associated with a modified lease were identified during 2016 and 2017. Related to these lease modifications, we also disposed of fixed assets with a net carrying value of $0.5 million, $0.6 million and $1.3 million, and recognized a net loss on disposal of $0.5 million, $0.6 million and $0.2 million during 2017, 2016 and 2015, respectively.
The above loss and impairment charge are included in the line “General and administrative” in the accompanying Consolidated Statements of Operations.