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Software and Other Intangible Assets
6 Months Ended
Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Software and Other Intangible Assets
7. Software and Other Intangible Assets

At June 30, 2016, software net book value totaling $197.9 million, net of $172.6 million of accumulated amortization, includes the net book value of software marketed for external sale of $51.8 million. The remaining software net book value of $146.1 million is comprised of various software that has been acquired or developed for internal use.

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.

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 June 30, 2016 and 2015 totaled $3.0 million and $3.6 million, respectively. Software for resale amortization expense recorded in the six months ended June 30, 2016 and 2015 totaled $6.3 million and $7.5 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 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 $11.0 million and $9.1 million for the three months ended June 30, 2016 and 2015, respectively, is included in depreciation and amortization in the condensed consolidated statements of operations. Amortization of software for internal use of $22.9 million and $17.6 million for the six months ended June 30, 2016 and 2015, 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:

 

     June 30, 2016      December 31, 2015  

(in thousands)

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

Customer relationships

   $ 300,784       $ (88,801   $ 211,983       $ 336,075       $ (86,585   $ 249,490   

Trademarks and tradenames

     16,387         (10,717     5,670         18,040         (10,605     7,435   

Purchased Contracts

     10,543         (10,543     —           10,690         (10,690     —     
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
   $ 327,714       $ (110,061   $ 217,653       $ 364,805       $ (107,880   $ 256,925   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Other intangible assets amortization expense for the three months ended June 30, 2016 and 2015 totaled $5.3 million and $5.7 million, respectively. Other intangible assets amortization expense for the six months ended June 30, 2016 and 2015 totaled $11.1 million and $11.5 million, respectively.

Based on capitalized software and other intangible assets at June 30, 2016, 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 2016

   $ 27,984       $ 10,183   

2017

     49,829         19,368   

2018

     37,900         18,863   

2019

     29,864         18,306   

2020

     24,355         17,416   

2021

     16,537         16,935   

Thereafter

     11,392         116,582   
  

 

 

    

 

 

 

Total

   $ 197,861       $ 217,653