The higher level of capital spending (particularly in 2014) reflects a few main factors.
First, the 2014 figure includes approximately $11 million of payments made in early 2014 for work that was completed during 2013.
Second, the amount of capitalized software development has increased to reflect ongoing enhancements as well as new development of upgraded software platforms, as shown in the table below:
| $mil |
2011 |
2012 |
2013 |
Nine months ended
Sept. 30, 2014 |
| Capitalized software development (included in capital expenditures) |
$ 5.3 |
$ 8.5 |
$ 8.1 |
$ 13.6 |
| Capital expenditures (total) |
$ 23.3 |
$ 30.0 |
$ 33.6 |
$ 42.8 |
Third, we’ve made significant investments in both hardware and software for our U.S. and non-U.S. operations, which contributed to higher capital spending in 2013 and 2014. We’ve also had additional expense related to office build-outs, which increased capital spending in 2014.
We expect to continue making capital expenditures going forward, but we don’t give specific projections about the level of future capital expenditures.