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

At December 31, 2015, software net book value totaled $237.9 million, net of $158.9 million of accumulated amortization. Included in this amount is software marketed for external sale of $70.1 million. The remaining software net book value of $167.8 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.

Amortization of software marketed for external sale is computed using the greater of the ratio of current revenues to total current and anticipated revenues expected to be derived from the software or the straight-line method over an estimated useful life of generally three to ten years. Software for resale amortization expense recorded during the years ended December 31, 2015, 2014 and 2013 totaled $14.5 million, $14.8 million, and $13.6 million, respectively. These software amortization expense amounts are reflected in cost of license in the consolidated statements of income.

 

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 amortization expense recorded during the years ended December 31, 2015, 2014 and 2013 totaled $38.3 million, $26.7 million, and $19.1 million, respectively. These software amortization expense amounts are reflected in depreciation and amortization in the consolidated statements of income.

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):

 

     December 31, 2015      December 31, 2014  
     Gross
Carrying
Amount
     Accumulated
Amortization
    Net Balance      Gross
Carrying
Amount
     Accumulated
Amortization
    Net Balance  

Customer relationships

   $ 336,075       $ (86,585   $ 249,490       $ 322,216       $ (68,616   $ 253,600   

Trademarks and tradenames

     18,040         (10,605     7,435         15,767         (7,946     7,821   

Purchased Contracts

     10,690         (10,690     —           10,768         (10,768     —     

Covenant not to compete

     420         (420     —           433         (418     15   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
   $ 365,225       $ (108,300   $ 256,925       $ 349,184       $ (87,748   $ 261,436   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Other intangible assets amortization expense recorded during the years ended December 31, 2015, 2014 and 2013 totaled $23.0 million, $24.7 million, and $18.5 million, respectively.

Based on capitalized intangible assets at December 31, 2015, and assuming no impairment of these intangible assets, estimated amortization expense amounts in future fiscal years are as follows (in thousands):

 

Fiscal Year Ending December 31,

   Software
Amortization
     Other
Intangible
Assets
Amortization
 

2016

   $ 59,446       $ 23,242   

2017

     51,795         21,742   

2018

     39,812         21,234   

2019

     30,934         20,645   

2020

     26,451         19,722   

Thereafter

     29,503         150,340   
  

 

 

    

 

 

 

Total

   $ 237,941       $ 256,925