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Software and Other Intangible Assets
12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Software and Other Intangible Assets

4. Software and Other Intangible Assets

At December 31, 2016, software net book value totaled $185.5 million, net of $195.0 million of accumulated amortization. Included in this amount is software marketed for external sale of $52.3 million. The remaining software net book value of $133.2 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 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, 2016, 2015, and 2014 totaled $13.9 million, $14.5 million, and $14.8 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, 2016, 2015, and 2014 totaled $45.7 million, $38.3 million, and $26.7 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, 2016      December 31, 2015  
     Gross
Carrying
Amount
     Accumulated
Amortization
    Net
Balance
     Gross
Carrying
Amount
     Accumulated
Amortization
    Net
Balance
 

Customer relationships

   $ 295,730      $ (96,356   $ 199,374      $ 336,075      $ (86,585   $ 249,490  

Trademarks and tradenames

     16,019        (11,759     4,260        18,040        (10,605     7,435  

Purchased Contracts

     10,429        (10,429     —          10,690        (10,690     —    
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
   $ 322,178      $ (118,544   $ 203,634      $ 364,805      $ (107,880   $ 256,925  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Other intangible assets amortization expense recorded during the years ended December 31, 2016, 2015, and 2014 totaled $21.2 million, $23.0 million, and $24.7 million, respectively.

 

Based on capitalized intangible assets at December 31, 2016, 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
 

2017

   $ 55,229      $ 19,040  

2018

     41,254        18,537  

2019

     32,871        18,006  

2020

     25,733        17,139  

2021

     17,848        16,677  

Thereafter

     12,561        114,235  
  

 

 

    

 

 

 

Total

   $ 185,496      $ 203,634