Fixed Assets, Net

9 Months Ended

Sep. 30, 2013

Property Plant And Equipment [Abstract]

Fixed Assets, Net

14. Fixed Assets, Net

Fixed assets, net consisted of the following (in thousands):

	September 30, 2013		December 31, 2012
Computer and communications equipment	$	158,565	$	176,845
Software, including software development costs		108,617		146,676
Leasehold improvements and other fixed assets		111,428		111,575
		378,610		435,096
Less: accumulated depreciation and amortization		247,347		293,987
Fixed assets, net	$	131,263	$	141,109

Depreciation expense was $7.5 million and $9.5 million for the three months ended September 30, 2013 and 2012, respectively. Depreciation expense was $24.5 million and $27.7 million for the nine months ended September 30, 2013 and 2012, respectively. Depreciation is included as part of “Occupancy and equipment” in the Company’s unaudited condensed consolidated statements of operations.

In accordance with FASB guidance, the Company capitalizes qualifying computer software development costs incurred during the application development stage and amortizes them over their estimated useful life of three years on a straight-line basis. For the three months ended September 30, 2013 and 2012, software development costs totaling $3.8 million and $2.2 million, respectively, were capitalized. For the nine months ended September 30, 2013 and 2012, software development costs totaling $11.5 million and $8.9 million, respectively, were capitalized. Amortization of software development costs totaled $1.9 million and $3.2 million for the three months ended September 30, 2013 and 2012, respectively. Amortization of software development costs totaled $6.9 million and $7.9 million for the nine months ended September 30, 2013 and 2012, respectively. Amortization of software development costs is included as part of “Occupancy and equipment” in the Company’s unaudited condensed consolidated statements of operations.

Impairment charges of $0.4 million and $0.1 million were recorded for the three months ended September 30, 2013 and 2012, respectively, related to the evaluation of capitalized software projects for future benefit and for fixed assets no longer in service. Impairment charges of $1.2 million and $1.1 million were recorded for the nine months ended September 30, 2013 and 2012, respectively, related to the evaluation of capitalized software projects for future benefit and for fixed assets no longer in service. Impairment charges related to capitalized software and fixed assets are reflected in “Occupancy and equipment” in the Company’s unaudited condensed consolidated statements of operations.

As a result of the NASDAQ OMX Transaction, the Company sold fixed assets with a carrying value of approximately $13.5 million (see Note 22—“Divestiture”).