Fixed Assets, Net

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

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


	March 31, 2024		December 31, 2023
Computer and communications equipment	$	104,450	$	103,621
Software, including software development costs	371,636		360,047
Leasehold improvements and other fixed assets	99,358		99,034
	575,444		562,702
Less: accumulated depreciation and amortization	(398,658)		(384,402)
Fixed assets, net	$	176,786	$	178,300

Depreciation expense was $5.4 million and $5.5 million for the three months ended March 31, 2024 and 2023, respectively. Depreciation is included as part of “Occupancy and equipment” in the Company’s unaudited Condensed Consolidated Statements of Operations.

The Company has $5.8 million and $5.9 million of asset retirement obligations related to certain of its leasehold improvements as of March 31, 2024 and December 31, 2023, 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 March 31, 2024 and 2023, software development costs totaling $12.0 million and $12.2 million, respectively, were capitalized. Amortization of software development costs totaled $10.4 million and $9.9 million for the three months ended March 31, 2024 and 2023, 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 $1.8 million were recorded for the three months ended March 31, 2024 and 2023, 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.