6. Software and Other Intangible Assets

At June 30, 2012, software net book value totaling $117.6 million, net of $62.3 million of accumulated amortization, includes the net book value of software marketed for external sale of $87.8 million. The remaining software net book value of $29.8 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 June 30, 2012 and 2011 totaled $3.4 million and $1.7 million, respectively. Software for resale amortization expense recorded in the six months ended June 30, 2012 and 2011 totaled $6.2 million and $3.3 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 of $3.0 million and $2.0 million for the three months ended June 30, 2012 and 2011, respectively, is included in depreciation and amortization in the condensed consolidated statements of operations. Amortization of software for internal use of $5.5 million and $3.9 million for the six months ended June 30, 2012 and 2011, respectively.

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):


	June 30, 2012							December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Balance		Gross Carrying Amount		Accumulated Amortization			Net Balance
Customer relationships	$	151,126	$	(27,862	)	$	123,264	$	40,298	$	(23,392	)	$	16,906
Purchased contracts		10,736		(10,235	)		501		10,750		(10,023	)		727
Trademarks and tradenames		5,769		(1,225	)		4,544		1,291		(585	)		706
Covenant not to compete		440		(125	)		315		80		(76	)		4

	$	168,071	$	(39,447	)	$	128,624	$	52,419	$	(34,076	)	$	18,343

Other intangible assets amortization expense for the three months ended June 30, 2012 and 2011 totaled $3.2 million and $1.7 million, respectively. Other intangible assets amortization expense for the six months ended June 30, 2012 and 2011 totaled $5.5 million and $3.3 million, respectively.

Based on capitalized software and other intangible assets at June 30, 2012, estimated amortization expense for future fiscal years is as follows (in thousands):


Fiscal Year Ending December 31,	Software Amortization		Other Intangible Assets Amortization
Remainder of 2012	$	12,033	$	6,472
2013		19,492		12,702
2014		17,265		10,962
2015		13,751		7,639
2016		11,555		7,171
Thereafter		43,552		83,678

Total	$	117,648	$	128,624