Capitalized Software Development Costs

9 Months Ended

Sep. 30, 2017

(5) Capitalized Software Development Costs

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

				As of September 30, 2017
	Gross carrying amount		Amortization period	Accumulated amortization			Net carrying amount
Capitalized software development costs	$	35,278	3 years	$	(25,606	)	$	9,672
Total capitalized software development costs	$	35,278		$	(25,606	)	$	9,672

				As of December 31, 2016
	Gross carrying amount		Amortization period	Accumulated amortization			Net carrying amount
Capitalized software development costs	$	30,658	3 years	$	(21,866	)	$	8,792
Total capitalized software development costs	$	30,658		$	(21,866	)	$	8,792

The Company capitalized software development costs of $4.6 million and $5.5 million for the nine months ended September 30, 2017 and the year ended December 31, 2016, respectively.

Amortization expense for capitalized software development costs was $1.2 million and $3.7 million for the three and nine months ended September 30, 2017, respectively, and $1.3 million and $3.6 million for the three and nine months ended September 30, 2016, 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, 2017, for each of the following years is as follows (in thousands):

	Amounts
2017 (for the remaining three months)	$	1,475
2018		4,384
2019		3,127
2020		686
	$	9,672