Anuvu Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, net

Intangible Assets, net

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

As a result of the business combinations in 2013, 2014 and 2015 (the "Business Combination"), the Company acquired definite-lived intangible assets that are primarily amortized on a straight-line basis. The Company's definite-lived intangible assets have assigned useful lives ranging from 1.5 to 8 years (weighted average of 5.5 years).

Intangible assets, net at March 31, 2016, consisted of the following (in thousands):



			March 31, 2016
	Weighted Average Useful Lives		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Intangible assets:
Definite life:
Existing technology - software	5.8 years		$	24,475	$	4,034	$	20,441
Existing technology - games	5 years		12,331		7,809		4,522
Developed technology	8 years		7,317		2,287		5,030
Customer relationships	7.5 years		133,653		55,533		78,120
Other	3.7 years		7,416		5,293		2,123
Content library (acquired in Business Combination)	1.5 years	₍₁₎	14,298		14,298		—
Content library (acquired post Business Combination)	1.5 years		54,780		35,334		19,446
Total intangible assets			$	254,270	$	124,588	$	129,682



			December 31, 2015
	Weighted Average Useful Lives		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Intangible assets:
Definite life:
Existing technology - software	5.8 years		$	24,474	$	2,978	$	21,496
Existing technology - games	5.0 years		12,331		7,193		5,138
Developed technology	8.0 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

(1) Useful estimate based upon the content library acquired in the business combination in which the Company acquired Row 44, Inc. ("Row 44") and 86% of the shares of Advanced Inflight Alliance AG ("AIA") (the "Business Combination"), which approximates historical experience.

Content library that is expected to be licensed and generates revenues within the next twelve months is classified as Content library, current, on the Company's condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015. The remainder of content library is classified and included within the intangible asset amount. The Company expects to record amortization of the intangible assets as follows (in thousands):



Year ending December 31,	Amount
2016 (remaining nine months)	$	33,802
2017	32,409
2018	21,524
2019	15,834
2020	14,363
Thereafter	11,750
Total	$	129,682

The Company recorded amortization expense of $7.4 million and $6.1 million for the three months ended March 31, 2016 and 2015, respectively. Amortization expense excludes the amortization of the content library, which is included in cost of sales.