Fixed Assets, Net

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

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


	September 30, 2022		December 31, 2021
Computer and communications equipment	$	100,527	$	96,472
Software, including software development costs	309,627		280,540
Leasehold improvements and other fixed assets	97,086		105,362
	507,240		482,374
Less: accumulated depreciation and amortization	(325,161)		(292,262)
Fixed assets, net	$	182,079	$	190,112

Depreciation expense was $5.4 million and $6.0 million for the three months ended September 30, 2022 and 2021, respectively. Depreciation expense was $16.4 million and $18.9 million for the nine months ended September 30, 2022 and 2021, respectively. Depreciation is included as part of “Occupancy and equipment” in the Company’s unaudited Condensed Consolidated Statements of Operations.

The Company has $5.4 million and $6.2 million of asset retirement obligations related to certain of its leasehold improvements as of September 30, 2022 and December 31, 2021, respectively. 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 September 30, 2022 and 2021, software development costs totaling $12.6 million and $7.8 million, respectively, were capitalized. Amortization of software development costs totaled $9.5 million and $9.3 million for the three months ended September 30, 2022 and 2021, respectively. For the nine months ended September 30, 2022 and 2021, software development costs totaling $35.1 million and $31.7 million, respectively, were capitalized. Amortization of software development costs totaled $27.7 million and $26.0 million for the nine months ended September 30, 2022 and 2021, 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 $0.3 million and $0.6 million were recorded for the three months ended September 30, 2022 and 2021, respectively, related to the evaluation of capitalized software projects for future benefit and for fixed assets no longer in service. Impairment charges of $5.6 million and $3.7 million were recorded for the nine months ended September 30, 2022 and 2021, 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.