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Software and Other Intangible Assets
12 Months Ended
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Software and Other Intangible Assets

4. Software and Other Intangible Assets

At December 31, 2017, software net book value totaled $155.4 million, net of $230.7 million of accumulated amortization. Included in this amount is software marketed for external sale of $40.9 million. The remaining software net book value of $114.5 million is comprised of various software that has been acquired or developed for internal use.

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.

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, 2017, 2016, and 2015, totaled $12.8 million, $13.9 million, and $14.5 million, respectively. These software amortization expense amounts are reflected in cost of revenue in the 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 amortization expense recorded during the years ended December 31, 2017, 2016, and 2015, totaled $45.2 million, $45.7 million, and $38.3 million, respectively. These software amortization expense amounts are reflected in depreciation and amortization in the 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 (in thousands):

 

     December 31, 2017      December 31, 2016  
     Gross
Carrying
Amount
     Accumulated
Amortization
    Net
Balance
     Gross
Carrying
Amount
     Accumulated
Amortization
    Net
Balance
 

Customer relationships

   $ 305,218      $ (116,677   $ 188,541      $ 295,730      $ (96,356   $ 199,374  

Trademarks and tradenames

     16,646        (13,906     2,740        16,019        (11,759     4,260  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
     $321,864      $(130,583)     $191,281      $311,749      $(108,115)     $203,634  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Other intangible assets amortization expense recorded during the years ended December 31, 2017, 2016, and 2015, totaled $19.4 million, $21.2 million, and $23.0 million, respectively.

 

Based on capitalized intangible assets at December 31, 2017, 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
 

2018

   $ 49,012      $ 19,145  

2019

     40,471        18,587  

2020

     31,550        17,688  

2021

     19,734        17,176  

2022

     8,383        17,015  

Thereafter

     6,236        101,670  
  

 

 

    

 

 

 

Total

   $ 155,386      $ 191,281