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F-18
applied prospectively. Early adoption is permitted. We are currently evaluating the impact of this amended guidance on
our consolidated financial statements.
In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification
of Deferred Taxes. This amended guidance requires an entity to present deferred tax assets and liabilities as noncurrent in
the statement of financial position. The amended guidance is effective for the Company commencing in the first quarter
of fiscal 2018. Early adoption is permitted. We expect the adoption of this update will result in a reclassification of
deferred tax amounts on the consolidated balance sheets.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This update will require lease assets
and lease liabilities to be recognized on the balance sheet and disclosure of key information about leasing arrangements.
This guidance is effective for the Company commencing in the first quarter of fiscal 2019 and must be adopted using a
modified retrospective transition, and provides for certain practical expedients. Early adoption is permitted. We are
currently evaluating the impact of this standard on our consolidated financial statements.
3. Property and Equipment
Property and equipment consisted of the following (in thousands):
December 31,
December 31,
2015
2014
Computers and other related equipment ...........................................
$
16,588
$
28,776
Purchased and internally developed software .......................................
34,868
48,875
Furniture and fixtures ..........................................................
1,423
3,004
Leasehold improvements .......................................................
7,296
7,591
60,175
88,246
Less accumulated depreciation ...................................................
(45,607)
(65,410)
Property and equipment, net .....................................................
$
14,568
$
22,836
At December 31, 2015, total software under capital lease and vendor financing obligations consisted of $3.8
million and was fully amortized. At December 31, 2014, total software under capital lease and vendor financing
obligations consisted $3.8 million with accumulated amortization of $3.7 million. Amortization expense for assets under
capital lease and vendor financing obligations was not material for the year ended December 31, 2015, and was $0.7
million for both of the years ended December 31, 2014 and 2013.
Depreciation expense for the periods shown is classified as follows (in thousands):
Year ended December 31,
2015
2014
2013
Service costs ...................................................
$
5,965
$
6,798
$
9,594
Sales and marketing .............................................
67
156
275
Product development .............................................
200
496
645
General and administrative ........................................
4,946
4,802
3,942
Discontinued operations ..........................................
—
4,662
6,045
Total depreciation .............................................
$
11,178
$
16,914
$
20,501
As a result of the shortening our estimated useful lives for certain assets, we recorded accelerated depreciation
expense of approximately $2.1 million, $1.3 million and $0.8 million for the years ended December 31, 2015, 2014 and
2013.