Software and Other Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Software and Other Intangible Assets

Software and Other Intangible Assets

As of September 30, 2019, software net book value totaled $235.9 million, net of $288.3 million of accumulated amortization. Included in this net book value amount is software for resale of $18.5 million and software acquired or developed for internal use of $217.4 million.

As of December 31, 2018, software net book value totaled $137.2 million, net of $252.2 million of accumulated amortization. Included in this net book value amount is software for resale of $27.5 million and software acquired or developed for internal use of $109.7 million.

Amortization of software for resale is computed using the greater of (a) the ratio of current revenues to total current and future revenues expected to be derived from the software or (b) the straight-line method over an estimated useful life of generally three to ten years. Software for resale amortization expense recorded during the three months ended September 30, 2019 and 2018, totaled $2.8 million and $2.6 million, respectively. Software for resale amortization expense recorded in the nine months ended September 30, 2019 and 2018, totaled $8.8 million and $9.6 million, respectively. These software amortization expense amounts are reflected in cost of revenue in the condensed consolidated statements of operations.

Amortization of software for internal use is computed using the straight-line method over an estimated useful life of generally three to ten years. Software for internal use amortization expense recorded during the three months ended September 30, 2019 and 2018, totaled $15.7 million and $10.2 million, respectively. Software for internal use amortization expense recorded during the nine months ended September 30, 2019 and 2018, totaled $39.4 million and $31.0 million, respectively. These software amortization expense amounts are reflected in depreciation and amortization in the condensed consolidated statements of operations.

The carrying amount and accumulated amortization of the Company’s other intangible assets subject to amortization at each balance sheet date are as follows (in thousands):

	September 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Balance		Gross Carrying Amount		Accumulated Amortization			Net Balance
Customer relationships	$	502,682	$	(149,946	)	$	352,736	$	297,991	$	(131,187	)	$	166,804
Trademarks and tradenames	27,052		(16,442		)	10,610		16,348		(15,025		)	1,323
Total other intangible assets	$	529,734	$	(166,388	)	$	363,346	$	314,339	$	(146,212	)	$	168,127

Other intangible assets amortization expense during the three months ended September 30, 2019 and 2018, totaled $9.4 million and $4.7 million, respectively. Other intangible assets amortization expense for the nine months ended September 30, 2019 and 2018, totaled $22.5 million and $14.4 million, respectively.

Based on capitalized intangible assets as of September 30, 2019, estimated amortization expense amounts in future fiscal years are as follows (in thousands):

Fiscal Year Ending December 31,	Software		Other Intangible Assets
Remainder of 2019	$	17,416	$	9,304
2020	64,756		36,783
2021	51,549		36,308
2022	33,878		36,166
2023	23,374		35,876
Thereafter	44,963		208,909
Total	$	235,936	$	363,346