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

Quarterly report pursuant to Section 13 or 15(d)

Content Library and Intangible Assets, net

Content Library and Intangible Assets, net

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Content Library and Intangible Assets, net

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).

Content library and intangible assets, net at June 30, 2016, consisted of the following (in thousands):



	Weighted Average Useful Lives		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Intangible assets:
Definite life:
Existing technology - software	5.8 years		$	24,475	$	5,160	$	19,315
Existing technology - games	5 years		12,331		8,426		3,905
Developed technology	8 years		7,317		2,515		4,802
Customer relationships	7.5 years		133,637		60,821		72,816
Other	3.7 years		7,414		5,657		1,757
Content library (acquired in Business Combination)	1.5 years	₍₁₎	14,298		14,298		—
Content library (acquired post Business Combination)	1.5 years		57,844		37,315		20,529
Total intangible assets			$	257,316	$	134,192	$	123,124

Content library and intangible assets, net at December 31, 2015, consisted of the following (in thousands):



	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		4,990		2,409
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		33,516		16,083
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"), which approximates historical experience.

The Company expects to record amortization of the content library and intangible assets as follows (in thousands):



Year ending December 31,	Amount
2016 (remaining six months)	$	20,088
2017	39,564
2018	21,523
2019	15,834
2020	14,362
Thereafter	11,753
Total	$	123,124

The Company recorded amortization expense of $7.5 million and $14.9 million for the three and six months ended June 30, 2016, respectively and $6.0 million and $12.0 million for the three and six months ended June 30, 2015, respectively. Amortization expense excludes the amortization of the content library, which is included in cost of sales.