Capitalized Software Development Costs

9 Months Ended

Sep. 30, 2016

(5) Capitalized Software Development Costs

Capitalized software development costs consisted of the following (in thousands):

				As of September 30, 2016

	Gross carrying amount		Amortization period	Accumulated amortization			Net carrying amount

Capitalized software development costs	$	29,451	3 years	$	(20,496	)	$	8,955
Total capitalized software development costs	$	29,451		$	(20,496	)	$	8,955

				As of December 31, 2015
	Gross carrying amount		Amortization period	Accumulated amortization			Net carrying amount

Capitalized software development costs	$	25,119	3 years	$	(16,941	)	$	8,178
Total capitalized software development costs	$	25,119		$	(16,941	)	$	8,178

The Company capitalized software development costs of $4.9 million, $1.3 million and $4.3 million during the year ended December 31, 2015 and for the three and nine months ended September 30, 2016, respectively.

Amortization expense for capitalized software development costs was $1.3 million and $3.6 million for the three and nine months ended September 30, 2016, respectively, and $1.0 million and $2.1 million for the three and nine months ended September 30, 2015, respectively. Amortization of capitalized software development costs is classified within cost of revenue in the consolidated statements of operations.

The expected amortization of capitalized software development costs, as of September 30, 2016, for each of the following years is as follows (in thousands):

	Amounts
2016 (for the remaining three months)	$	1,386
2017		3,917
2018		2,659
2019		993
	$	8,955

- 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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