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Software and Other Intangible Assets
6 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Software and Other Intangible Assets

5. Software and Other Intangible Assets

At June 30, 2018, software net book value totaling $144.7 million, net of $239.5 million of accumulated amortization, includes the net book value of software marketed for external sale of $33.8 million. The remaining software net book value of $110.9 million is comprised of various software that has been acquired or developed for internal use.

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.

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, 2018 and 2017, totaled $3.4 million and $3.2 million, respectively. Software for resale amortization expense recorded in the six months ended June 30, 2018 and 2017, totaled $7.0 million and $6.5 million, respectively. These software amortization expense amounts are reflected in cost of revenue in the condensed consolidated statements of operations.

Quarterly 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 SaaS and PaaS offerings. Amortization of software for internal use in the three months ended June 30, 2018 and 2017, totaled $10.3 million and $11.3 million, respectively. Amortization of software for internal use in the six months ended June 30, 2018 and 2017, totaled $20.8 million and $22.6 million, respectively. These software amortization expense amounts are 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, 2018      December 31, 2017  

(in thousands)

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

Customer relationships

   $ 302,080      $ (124,465   $ 177,615      $ 305,218      $ (116,677   $ 188,541  

Trademarks and tradenames

     16,507        (14,550     1,957        16,646        (13,906     2,740  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
     $318,587      $(139,015)     $179,572      $321,864      $(130,583)     $191,281  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Other intangible assets amortization expense for the three months ended June 30, 2018 and 2017, totaled $4.8 million. Other intangible assets amortization expense for the six months ended June 30, 2018 and 2017, totaled $9.7 million and $9.6 million, respectively.

Based on capitalized software and other intangible assets at June 30, 2018, 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 2018

   $ 25,561      $ 9,401  

2019

     44,993        18,400  

2020

     35,162        17,509  

2021

     22,213        17,007  

2022

     9,157        16,853  

2023

     4,778        16,535  

Thereafter

     2,801        83,867  
  

 

 

    

 

 

 

Total

   $ 144,665      $ 179,572