Computer Software, Net

12 Months Ended

Dec. 31, 2016

Note 8 Computer Software, Net

Computer software as of December 31, 2016 and 2015 is summarized as follows:


(in thousands)	2016		2015
Licensed computer software	$	513,790	513,443
Software development costs		428,581	404,238
Acquisition technology intangibles		238,211	167,971
Total computer software		1,180,582	1,085,652
Less accumulated amortization:
Licensed computer software		315,591	282,563
Software development costs		307,190	287,863
Acquisition technology intangibles		134,613	110,156
Total accumulated amortization		757,394	680,582
Computer software, net	$	423,188	405,070

The Company held the following computer software under license agreements as of December 31, 2016 and 2015:


(in thousands)	2016		2015
Licensed computer software	$	23,665	18,206
Accumulated amortization		(14,634)	(8,175)
Licensed computer software, net	$	9,031	10,031

Amortization expense includes amounts for computer software acquired under license agreements. The Company had the following amortization expense related to computer software for the years ended December 31, 2016, 2015 and 2014:


(in thousands)	2016		2015	2014
Amortization expense related to:
Licensed computer software	$	45,655	41,823	36,775
Software development costs		26,478	22,740	25,248
Acquisition technology intangibles		26,217	16,734	19,683

The weighted average useful life for each component of computer software, and in total, as of December 31, 2016, is as follows:


	Weighted Average Amortization Period (Yrs)
Licensed computer software		5.8
Software development costs		6.1
Acquisition technology intangibles		6.2
Total		6.0

Estimated future amortization expense of licensed computer software, software development costs and acquisition technology intangibles as of December 31, 2016 for the next five years is:


(in thousands)	Licensed Computer Software		Software Development Costs	Acquisition Technology Intangibles
2017	$	42,937	23,777	28,268
2018		34,142	18,225	25,793
2019		21,071	13,414	25,793
2020		17,010	9,646	20,134
2021		9,293	6,787	3,600

- 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 + Details