INTERNALLY DEVELOPED SOFTWARE

12 Months Ended

Dec. 31, 2013

NOTE 3: INTERNALLY DEVELOPED SOFTWARE

The following is a summary of internally developed software:

	Year Ended December 31,

	2013			2012
	(in thousands)
Amounts capitalized, beginning of year	$	62,962		$	57,540
Development costs capitalized		6,061			6,467
Foreign currency translation		—			(20	)
Dispositions		(161	)		(1,025	)


Amounts capitalized, end of year		68,862			62,962
Accumulated amortization, end of year		(52,661	)		(44,057	)


Internally developed software, net	$	16,201		$	18,905

Included in the above are capitalized software development costs for projects in progress of $3.7 million and $3.6 million at December 31, 2013 and 2012, respectively. During the years ended December 31, 2013, 2012, and 2011, we recognized amortization expense related to capitalized software development costs of $8.8 million, $8.6 million, and $7.3 million, respectively. Internally developed software is tested for impairment whenever events or changes in circumstances indicate that the net realizable value may be less than the unamortized capitalized cost.

- Definition

The entire disclosure for research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.

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