Software Developed For Internal Use

6 Months Ended

Jun. 30, 2012

Software Developed For Internal Use [Abstract]

Software Developed For Internal Use

8. Software Developed for Internal Use

The Company applies ASC 350, “Intangibles-Goodwill and Other, Internal-Use Software.” The costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage and technological feasibility has been established, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Maintenance and training costs are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life, generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairments whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were no impairments to internal software in any of the periods covered in these consolidated financial statements.

The total R&D spend, comprised of R&D expense and capitalized internal use software for the periods ended June 30, 2012 and 2011 is as follows:

	Six months ended June 30,
	2012		2011
Capitalized internal-use software costs	$	10,074	$	6,883
Research and development expenses		13,978		9,264
Total capitalized software costs and research and development expenses	$	24,052	$	16,147

Amortization of capitalized internal-use software costs was $3,501 and $6,772 for the three and six months ended June 30, 2012 and $2,285 and $4,573 for the three and six months ended June 30, 2011, respectively.