Capitalized Software Development Costs

12 Months Ended

Dec. 31, 2014

Finite-Lived Intangible Assets, Net [Abstract]

Capitalized Software Development Costs

Note 8.  Capitalized Software Development Costs

We capitalize computer software costs developed or obtained for internal use. Capitalized costs include internal and external labor and overhead.  Capitalization ceases and amortization begins no later than the point at which a computer software project is complete and ready for its intended use.  Capitalized software costs are amortized over the estimated useful life of the software.

The following table outlines the total capitalized software development costs subject to amortization and the related amortization expense:

	Indemnity Shareholder Interest
(in millions)	Years ended December 31,
	2014			2013			2012
Gross carrying amount	$	68		$	58		$	54
Accumulated amortization	(25		)	(18		)	(11		)
Net carrying amount	$	43		$	40		$	43
Amortization expense	$	7		$	7		$	6

Included in the gross carrying amount above are costs not yet subject to amortization of $11 million, $9 million and $7 million in 2014, 2013 and 2012, respectively.

The following table outlines the estimated future amortization expense related to capitalized software development costs as of December 31, 2014: 

(in millions)
	Indemnity Shareholder Interest
Year ending December 31,	Estimated amortization expense
2015	$	8
2016	8
2017	7
2018	4
2019	2

The Exchange had capitalized software development costs in-process of $4 million at December 31, 2014, not yet subject to amortization.