Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, net

v3.5.0.2
Intangible Assets, net
9 Months Ended
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, net
Intangible Assets, net

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 September 30, 2016, consisted of the following (dollars in thousands):

 
Weighted Average Useful Lives (Years)
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Carrying Value
Intangible assets:
 
 
 
 
 
 
 
Definite life:
 
 
 
 
 
 
 
Existing technology - software
7.0
 
$
46,275

 
$
6,856

 
$
39,419

Existing technology - games
5.0
 
12,331

 
9,042

 
3,289

Developed technology
8.0
 
7,317

 
2,745

 
4,572

Customer relationships
9.0
 
152,721

 
65,463

 
87,258

Vendor agreements
9.0
 
91,800

 
1,701

 
90,099

Other
4.0
 
9,612

 
5,916

 
3,696

Content library (acquired in Business Combination)
1.5
(1) 
14,298

 
14,298

 

Total intangible assets
 
 
$
334,354

 
$
106,021

 
$
228,333


Intangible assets, net at December 31, 2015, consisted of the following (dollars in thousands):

 
Weighted Average Useful Lives (Years)
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Carrying Value
Intangible assets:
 
 
 
 
 
 
 
Definite life:
 
 
 
 
 
 
 
Existing technology - software
5.8
 
$
24,474

 
$
2,978

 
$
21,496

Existing technology - games
5.0
 
12,331

 
7,193

 
5,138

Developed technology
8.0
 
7,317

 
2,058

 
5,259

Customer relationships
7.5
 
133,566

 
50,184

 
83,382

Other
3.7
 
7,399

 
4,990

 
2,409

Content library (acquired in Business Combination)
1.5
 
14,298

 
14,298

 

Total intangible assets
 
 
$
199,385

 
$
81,701

 
$
117,684


(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 three months)
$
10,418

2017
41,204

2018
36,803

2019
31,113

2020
29,641

Thereafter
79,154

Total
$
228,333


    
The Company recorded amortization expense of $9.2 million and $24.0 million for the three and nine months ended September 30, 2016, respectively and $7.3 million and $19.4 million for the three and nine months ended September 30, 2015, respectively. Amortization expense excludes the amortization of the content library, which is included in cost of sales.