6. Software and Other Intangible Assets

At September 30, 2011, software net book value totaling $24.0 million, net of $51.8 million of accumulated amortization, includes the net book value of software marketed for external sale of $11.4 million. The remaining software net book value of $12.6 million is comprised of various software that has been acquired or developed for internal use.

Quarterly amortization of software marketed for external sale is computed using the greater of the ratio of current revenues to total estimated revenues expected to be derived from the software or the straight-line method over an estimated useful life of three to six years. Software for resale amortization expense recorded in the three months ended September 30, 2011 and 2010 totaled $1.5 million. Software for resale amortization expense recorded in the nine months ended September 30, 2011 and 2010 totaled $4.8 million and $4.5 million, respectively. These software amortization expense amounts are reflected in cost of software license fees in the condensed consolidated statements of operations. Amortization of software for internal use of $2.1 million and $1.8 million for the three months ended September 30, 2011 and 2010, respectively, is included in depreciation and amortization in the condensed consolidated statements of operations. Amortization of software for internal use was $6.0 million and $5.4 million for the nine months ended September 30, 2011 and 2010, respectively.

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

		September 30,		September 30,			September 30,		September 30,		September 30,			September 30,
	September 30, 2011							December 31, 2010
	Gross Carrying Amount		Accumulated Amortization			Net Balance		Gross Carrying Amount		Accumulated Amortization			Net Balance
Customer relationships	$	40,516	$	(22,358	)	$	18,158	$	36,393	$	(18,855	)	$	17,538
Purchased contracts		10,772		(9,924	)		848		10,753		(8,504	)		2,249
Trademarks and tradenames		1,329		(560	)		769		1,062		(422	)		640
Covenant not to compete		80		(72	)		8		83		(62	)		21

	$	52,697	$	(32,914	)	$	19,783	$	48,291	$	(27,843	)	$	20,448

Other intangible assets amortization expense for the three months ended September 30, 2011 and 2010 totaled $1.8 million and $1.6 million, respectively. Other intangible assets amortization expense for the nine months ended September 30, 2011 and 2010 totaled $5.1 million and $4.7 million, respectively.

Based on capitalized software and other intangible assets at September 30, 2011, estimated amortization expense for future fiscal years is as follows (in thousands):

		September 30,		September 30,
Fiscal Year Ending December 31,	Software Amortization		Other Intangible Assets Amortization
Remainder of 2011	$	3,522	$	1,354
2012		11,452		5,402
2013		5,124		5,152
2014		2,929		3,370
2015		871		1,469
Thereafter		108		3,036

Total	$	24,006	$	19,783