Computer Software, net

12 Months Ended

Dec. 31, 2012

NOTE 8

Computer Software, net

Computer software at December 31 is summarized as follows:


(in thousands)	2012		2011
Licensed computer software	$	461,217		423,100
Software development costs		303,668		283,452
Acquisition technology intangibles		89,371		76,055

Total computer software		854,256		782,607

Less accumulated amortization:
Licensed computer software		336,521		309,571
Software development costs		232,113		208,781
Acquisition technology intangibles		58,705		49,011

Total accumulated amortization		627,339		567,363

Computer software, net	$	226,917		215,244

The Company allocated approximately $13.0 million to acquisition technology intangibles during 2012 due to the acquisitions of ProPay and CPAY. Refer to Note 24 for more information on these acquisitions.

Amortization expense related to licensed computer software costs was $37.4 million, $37.1 million and $33.4 million for the years ended December 31, 2012, 2011 and 2010, respectively. Amortization expense includes amounts for computer software acquired under capital lease. Amortization of software development costs was $23.3 million, $24.4 million and $23.1 million for the years ended December 31, 2012, 2011 and 2010, respectively. Amortization expense related to acquisition technology intangibles was $9.7 million, $10.3 million and $9.9 million for the years ended December 31, 2012, 2011 and 2010, respectively.

During the year ended December 31, 2011, the Company recognized an impairment loss of $960,000 related to the Japan Retail Gift program.

The weighted average useful life for each component of computer software, and in total, at December 31, 2012, is as follows:


	Weighted Average Amortization Period (Yrs)
Licensed computer software		5.5
Software development costs		5.9
Acquisition technology intangibles		6.6

Total		5.8

Estimated future amortization expense of licensed computer software, software development costs and acquisition technology intangibles as of December 31, 2012 for the next five years is:


(in thousands)	Licensed Computer Software		Software Development Costs		Acquisition Technology Intangibles
2013	$	35,676		25,345		10,306
2014		31,020		19,025		8,471
2015		24,521		13,331		5,426
2016		15,911		9,028		3,958
2017		11,153		4,734		2,474

- 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.

+ References

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+ Details