Internal Use Software Development Costs

12 Months Ended

Dec. 31, 2015

Internal use software development costs were as follows:



	December 31, 2015			December 31, 2014

	(in thousands)
Internal use software development costs, gross	$	27,265		$	20,926
Accumulated amortization	(13,336		)	(9,425		)
Internal use software development costs, net	$	13,929		$	11,501

During the years ended December 31, 2015, 2014 and 2013, the Company capitalized $9.2 million, $9.4 million, and $4.1 million of internal use software development costs. Amortization expense was $6.7 million, $5.1 million, and $2.7 million for the years ended December 31, 2015, 2014, and 2013. In the years ended December 31, 2015, 2014, and 2013, amortization expense included the write-off of software development costs, net, of $1.5 million, $0.7 million, and $0.2 million respectively. Based on the Company’s internal use software development costs at December 31, 2015, estimated amortization expense of $6.5 million, $4.9 million, $2.4 million, and $0.2 million is expected to be recognized in 2016, 2017, 2018, and 2019, respectively.

There were no impairment charges to internal use software development costs for the years ended December 31, 2015, 2014 and 2013.

- Definition

The entire disclosure for research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.

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