| 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):
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Weighted Average Useful Lives (Years) |
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Gross Carrying Value |
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Accumulated Amortization |
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Net Carrying Value |
Intangible assets: |
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Definite life: |
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Existing technology - software |
7.0 |
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$ |
46,275 |
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|
$ |
6,856 |
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|
$ |
39,419 |
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Existing technology - games |
5.0 |
|
12,331 |
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|
9,042 |
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|
3,289 |
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Developed technology |
8.0 |
|
7,317 |
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|
2,745 |
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|
4,572 |
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Customer relationships |
9.0 |
|
152,721 |
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|
65,463 |
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|
87,258 |
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Vendor agreements |
9.0 |
|
91,800 |
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|
1,701 |
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|
90,099 |
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Other |
4.0 |
|
9,612 |
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|
5,916 |
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|
3,696 |
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Content library (acquired in Business Combination) |
1.5 |
(1) |
14,298 |
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|
14,298 |
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— |
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Total intangible assets |
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|
$ |
334,354 |
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|
$ |
106,021 |
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$ |
228,333 |
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Intangible assets, net at December 31, 2015, consisted of the following (dollars in thousands):
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Weighted Average Useful Lives (Years) |
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Gross Carrying Value |
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Accumulated Amortization |
|
Net Carrying Value |
Intangible assets: |
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Definite life: |
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Existing technology - software |
5.8 |
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$ |
24,474 |
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|
$ |
2,978 |
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|
$ |
21,496 |
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Existing technology - games |
5.0 |
|
12,331 |
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|
7,193 |
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|
5,138 |
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Developed technology |
8.0 |
|
7,317 |
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|
2,058 |
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|
5,259 |
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Customer relationships |
7.5 |
|
133,566 |
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|
50,184 |
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|
83,382 |
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Other |
3.7 |
|
7,399 |
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|
4,990 |
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|
2,409 |
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Content library (acquired in Business Combination) |
1.5 |
|
14,298 |
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|
14,298 |
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— |
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Total intangible assets |
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|
$ |
199,385 |
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$ |
81,701 |
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$ |
117,684 |
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(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.
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The Company expects to record amortization of the content library and intangible assets as follows (in thousands):
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Year ending December 31,
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Amount |
2016 (remaining three months) |
$ |
10,418 |
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2017 |
41,204 |
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2018 |
36,803 |
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2019 |
31,113 |
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2020 |
29,641 |
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Thereafter |
79,154 |
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Total |
$ |
228,333 |
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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.
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