7. Operating expenses

Certain prior period operating expenses have been reclassified to conform with current year presentation.

Costs of services, excluding depreciation and amortization



	Three months ended				Six months ended
	June 30,				June 30,
Six months ended June 30,		2017		2016		2017		2016
Employee compensation expenses	$	8,813	$	8,880	$	14,289	$	15,138
Buildings, facilities and technology expenses		2,401		2,011		3,947		4,306
Travel, advertising and promotion expenses		7,426		7,359		12,082		13,296
Other costs of services		2,951		1,508		4,086		2,331
	$	21,591	$	19,758	$	34,404	$	35,071

SG&A expenses



	Three months ended				Six months ended
	June 30,				June 30,
Six months ended June 30,		2017		2016		2017		2016
Employee compensation expenses	$	47,405		46,989	$	91,860	$	91,000
Buildings, facilities and technology expenses		13,319		12,969		25,594		24,205
Travel, advertising and promotion expenses		6,201		6,792		12,781		12,322
Professional fees		3,224		3,083		6,324		5,849
Other SG&A expenses		4,228		4,159		8,393		7,726
	$	74,377	$	73,992	$	144,952	$	141,102

7. Operating expenses (continued)

Acquisition-related costs



	Three months ended				Six months ended
	June 30,				June 30,
Six months ended June 30,		2017		2016		2017		2016
IronPlanet: (note 22)
Stock option compensation
expense (note 20)	$	4,752	$	-	$	4,752	$	-
Legal costs		3,480		-		8,596		-
Other acquisition-related costs		13,955		-		16,530		-
Mascus: (note 22)
Continuing employment costs		121		266		277		439
Other acquisition-related costs		23		32		23		750
Xcira:
Continuing employment costs		284		305		666		611
Petrowsky: (note 22)
Continuing employment costs		208		-		420		-
Other acquisition-related costs		4		-		4		-
Kramer: (note 22)
Continuing employment costs		114		-		228		-
Other acquisition-related costs		7		-		79		-
	$	22,948	$	603	$	31,575	$	1,800

Depreciation and amortization expenses



	Three months ended				Six months ended
	June 30,				June 30,
Six months ended June 30,		2017		2016		2017		2016
Depreciation expense	$	6,793	$	7,932	$	13,585	$	15,715
Amortization expense		5,079		2,352		8,625		4,649
	$	11,872	$	10,284	$	22,210	$	20,364

Impairment loss

During the three months ended June 30, 2017, management identified indicators of impairment on certain software and software under development intangible assets (the “technology assets”). The indicators consisted of decisions made after the acquisition of IronPlanet that adversely impacted the extent or manner in which certain technology assets would be utilized. As part of its integration activities the Company determined that it was more likely than not that certain technology assets would not be utilized or developed as originally intended and no longer had value. As a result, management performed an impairment test that resulted in the recognition of an impairment loss of $8,911,000 on the technology assets.