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

5. Software and Other Intangible Assets

At September 30, 2018, software net book value totaling $147.3 million, net of $250.0 million of accumulated amortization, includes the net book value of software marketed for external sale of $30.9 million. The remaining software net book value of $116.4 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 September 30, 2018 and 2017, totaled $2.6 million and $3.1 million, respectively. Software for resale amortization expense recorded in the nine months ended September 30, 2018 and 2017, totaled $9.6 million. 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 September 30, 2018 and 2017, totaled $10.2 million and $11.5 million, respectively. Amortization of software for internal use in the nine months ended September 30, 2018 and 2017, totaled $31.0 million and $34.1 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:

 

(in thousands)

   September 30, 2018      December 31, 2017  
     Gross
Carrying
Amount
     Accumulated
Amortization
    Net Balance      Gross
Carrying
Amount
     Accumulated
Amortization
    Net Balance  

Customer relationships

   $ 300,782      $ (128,367   $ 172,415      $ 305,218      $ (116,677   $ 188,541  

Trademarks and tradenames

     16,450        (14,808     1,642        16,646        (13,906     2,740  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
   $ 317,232      $ (143,175   $ 174,057      $ 321,864      $ (130,583   $ 191,281  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Other intangible assets amortization expense for the three months ended September 30, 2018 and 2017, totaled $4.7 million and $4.9 million, respectively. Other intangible assets amortization expense for the nine months ended September 30, 2018 and 2017, totaled $14.4 million and $14.5 million, respectively.

Based on capitalized software and other intangible assets at September 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

   $ 13,724      $ 4,670  

2019

     47,416        18,325  

2020

     37,964        17,438  

2021

     24,930        16,939  

2022

     11,957        16,789  

2023

     6,306        16,478  

Thereafter

     5,019        83,418  
  

 

 

    

 

 

 

Total

   $ 147,316      $ 174,057