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Software and Other Intangible Assets
3 Months Ended
Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Software and Other Intangible Assets

6. Software and Other Intangible Assets

At March 31, 2015, software net book value totaling $206.8 million, net of $132.4 million of accumulated amortization, includes the net book value of software marketed for external sale of $80.6 million. The remaining software net book value of $126.2 million is comprised of various software that has been acquired or developed for internal use.

At December 31, 2014, software net book value totaled $209.5 million, net of $121.6 million of accumulated amortization. Included in this amount is software marketed for external sale of $85.9 million. The remaining software net book value of $123.6 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 ten years. Software for resale amortization expense recorded in the three months ended March 31, 2015 and 2014 totaled $3.9 million and $3.5 million, respectively. These software amortization expense amounts are reflected in cost of software license fees in the condensed consolidated statements of operations.

Quarterly amortization of software for internal use is computed using the straight-line method over an estimated useful life of three to ten years. Software for internal use includes software acquired through acquisitions that is used to provide certain of our hosted offerings. Amortization of software for internal use of $8.5 million and $5.2 million for the three months ended March 31, 2015 and 2014, respectively, is included in depreciation and amortization in the condensed consolidated statements of operations.

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:

 

     March 31, 2015      December 31, 2014  

(in thousands)

   Gross
Carrying
Amount
     Accumulated
Amortization
    Net Balance      Gross
Carrying
Amount
     Accumulated
Amortization
    Net Balance  

Customer relationships

   $ 317,471       $ (72,345   $ 245,126       $ 322,216       $ (68,616   $ 253,600   

Trademarks and tradenames

     15,541         (8,646     6,895         15,767         (7,946     7,821   

Purchased Contracts

     10,689         (10,689     —           10,768         (10,768     —     

Covenant not to compete

     429         (429     —           433         (418     15   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
$ 344,130    $ (92,109 $ 252,021    $ 349,184    $ (87,748 $ 261,436   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Other intangible assets amortization expense for the three months ended March 31, 2015 and 2014 totaled $5.8 million and $6.5 million, respectively.

 

Based on capitalized software and other intangible assets at March 31, 2015, estimated amortization expense for future fiscal years is as follows:

 

Fiscal Year Ending December 31,

   Software
Amortization
     Other
Intangible
Assets
Amortization
 
(in thousands)              

Remainder of 2015

   $ 34,257       $ 16,782   

2016

     40,740         21,465   

2017

     34,020         19,965   

2018

     25,284         19,458   

2019

     22,610         18,868   

2020

     21,449         18,028   

Thereafter

     28,397         137,455   
  

 

 

    

 

 

 

Total

$ 206,757    $ 252,021