Anuvu Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Intangible Assets, net

Intangible Assets, net

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

As a result of the historical business combinations, the Company acquired finite-lived intangible assets that are primarily amortized on a straight-line basis, which approximate their expected cash flow patterns. The Company's finite-lived intangible assets have assigned useful lives ranging from 1.5 to 10 years.

Intangible assets, net consisted of the following as of December 31, 2015 and December 31, 2014 (in thousands):



			December 31, 2015
	Weighted Average Useful Lives		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Intangible assets:
Finite life:
Existing technology - software	5.8 years		$	24,474	$	2,978	$	21,496
Existing technology - games	5 years		12,331		7,193		5,138
Developed technology	8 years		7,317		2,058		5,259
Customer relationships	7.5 years		133,566		50,184		83,382
Other	3.7 years		7,399		4,991		2,408
Content library (acquired in business combination)	1.5 years		14,298		14,298		—
Content library (acquired post business combination)	1.5 years	(1)	49,599		33,515		16,084
Total intangible assets			$	248,984	$	115,217	$	133,767



			December 31, 2014
	Weighted Average Useful Lives		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Intangible assets:
Finite life:
Existing technology - software	7 years		$	2,575	$	705	$	1,870
Existing technology - games	5 years		12,331		4,727		7,604
Developed technology	8 years		7,317		1,143		6,174
Customer relationships	7.2 years		119,879		30,437		89,442
Other	2.5 years		7,319		3,448		3,871
Content library (acquired in business combination)	1.5 years		14,298		14,148		150
Content library (acquired post business combination)	1.5 years	(1)	31,949		18,586		13,363
Total intangible assets			$	195,668	$	73,194	$	122,474

(1) Useful life estimate based upon the content library acquired in the business combination, which approximates historical experience.

The current portion of content library of approximately $12.3 million and $9.6 million is classified as a separate line item in the December 31, 2015 and 2014 Consolidated Balance Sheets, respectively. The non-current portion of content library is classified and included within Intangible assets, net in the Consolidated Balance Sheets. The Company expects to record amortization of the intangible assets as follows (in thousands):



Year ending December 31,	Amount
2016	$	39,015
2017	31,294
2018	21,526
2019	15,834
2020	14,363
Thereafter	11,735
Total	$	133,767

The Company recorded amortization expense of $27.0 million, $24.6 million and $17.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. In addition, amortization expense of $0.2 million, $2.7 million and $13.2 million from content library (acquired in business combination) is included in Cost of Sales in the Consolidated Statements of Operations in the years ended December 31, 2015, 2014 and 2013, respectively.