Fixed Assets, Net

6 Months Ended

Jun. 30, 2017

Property Plant And Equipment [Abstract]

14.	Fixed Assets, Net

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

	June 30, 2017			December 31, 2016
Computer and communications equipment	$	144,204		$	130,538
Software, including software development costs		143,078			130,397
Leasehold improvements and other fixed assets		169,132			154,602
		456,414			415,537
Less: accumulated depreciation and amortization		(280,677	)		(249,670	)
Fixed assets, net	$	175,737		$	165,867

Depreciation expense was $7.4 million and $6.9 million for the three months ended June 30, 2017 and 2016, respectively. Depreciation expense was $15.2 million and $14.1 million for the six months ended June 30, 2017 and 2016, respectively. Depreciation is included as part of “Occupancy and equipment” in the Company’s unaudited condensed consolidated statements of operations.

The Company has approximately $6.5 million of asset retirement obligations related to certain of its leasehold improvements. The associated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset. The liability is discounted and accretion expense is recognized using the credit adjusted risk-free interest rate in effect when the liability was initially recognized.

For the three months ended June 30, 2017 and 2016, software development costs totaling $9.6 million and $7.5 million, respectively, were capitalized. Amortization of software development costs totaled $5.1 million and $7.4 million for the three months ended June 30, 2017 and 2016, respectively. For the six months ended June 30, 2017 and 2016, software development costs totaling $14.3 million and $10.3 million, respectively, were capitalized. Amortization of software development costs totaled $10.6 million and $14.6 million for the six months ended June 30, 2017 and 2016, 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 $0.2 million and $1.4 million were recorded for the three months ended June 30, 2017 and 2016, respectively, related to the evaluation of capitalized software projects for future benefit and for fixed assets no longer in service. Impairment charges of $0.7 million and $3.2 million were recorded for the six months ended June 30, 2017 and 2016, respectively, related to the evaluation of the centralized software project for future benefit and fixed assets no longer in service. The impairment charges for the six months ended June 30, 2017 and 2016 were related to the Financial Services segment. 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.