Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v2.4.0.6
Intangible Assets
 3 Months Ended
Mar. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Intangible Assets, net

As a result of 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 8.5 years. The Company had no material indefinite-lived intangible assets at December 31, 2012.

Intangible assets, net at March 31, 2013, consisted of the following:
 
 
March 31, 2013
(in thousands)
Weighted Average Useful Lives
Gross Carrying Value
Accumulated Amortization
Net Carrying Value
Intangible assets:
 
 
 
 
Definite life:
 
 
 
 
Existing technology - software
8 years
$
2,537

$
(53
)
$
2,484

Existing technology - games
6 years
12,150

(338
)
11,812

IPR&D
8 years
7,210

—

7,210

Customer relationships
8.5 years
79,871

(1,455
)
78,416

Other
2 years
2,659

(239
)
2,420

Content library
1.5 years
15,418

(2,082
)
13,336

Total intangible assets
 
$
119,845

$
(4,167
)
$
115,678





Concurrent with the Business Combination, The Company acquired approximately 86% of the issued and outstanding shares of AIA, all of which were owned by PAR. The purchase price was allocated to the intangible assets as follows:

(in thousands)
Purchase Price Allocation
Existing technology - software
$
2,537

Existing technology - games
12,150

IPR&D
7,210

Customer relationships
79,871

Other
2,659

Content library
15,418

Total
$
119,845


As of March 31, 2013, there were no legal, regulatory or contractual limitations associated with these intangible assets.

The Company expects to record amortization of the intangible assets over the next five fiscal years and thereafter as follows:

Year ending December 31,       (in thousands)
Amount
2013 (9 months ended)
$
10,528

2014
13,835

2015
13,323

2016
12,973

2017
12,972

Thereafter
52,047

Total
$
115,678


The Company recorded amortization expense of $4.2 million and $0 in the three months ended March 31, 2013 and 2012, respectively.