Capitalized Software Development Costs

9 Months Ended

Sep. 30, 2018

(5) Capitalized Software Development Costs

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

				As of September 30, 2018
	Gross carrying amount		Amortization period	Accumulated amortization			Net carrying amount
Capitalized software development costs	$	43,915	3 years	$	(31,181	)	$	12,734
Total capitalized software development costs	$	43,915		$	(31,181	)	$	12,734

				As of December 31, 2017
	Gross carrying amount		Amortization period	Accumulated amortization			Net carrying amount
Capitalized software development costs	$	36,899	3 years	$	(26,894	)	$	10,005
Total capitalized software development costs	$	36,899		$	(26,894	)	$	10,005

The Company capitalized software development costs of $7.0 million and $4.6 million for the nine months ended September 30, 2018 and 2017, respectively. The Company capitalized software development costs of $2.7 million and $1.5 million for the three months ended September 30, 2018 and 2017, respectively.

Amortization expense for capitalized software development costs was $1.5 million and $1.2 million for the three months ended September 30, 2018 and 2017, respectively. Amortization expense for capitalized software development was $4.3 million and $3.7 million for the nine months ended September 30, 2018 and 2017, 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, 2018, for each of the following years is as follows (in thousands):

	Amounts
2018 (for the remaining three months)	$	1,751
2019		5,775
2020		3,778
2021		1,430
	$	12,734