Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, net

v2.4.0.8
Intangible Assets, net
 9 Months Ended
Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, net
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 (weighted average of 7.2 years). The Company had no material indefinite-lived intangible assets at December 31, 2012.

Intangible assets, net at September 30, 2013, consisted of the following (in thousands):
 
 
 
September 30, 2013
 
Weighted Average Useful Lives
 
Gross Carrying Value
Accumulated Amortization
Net Carrying Value
Intangible assets:
 
 
 
 
 
Definite life:
 
 
 
 
 
Existing technology - software
8 years
 
$
2,574

$
(215
)
$
2,359

Existing technology - games
6 years
 
12,331

(1,370
)
10,961

IPR&D
8 years
 
7,317

—

7,317

Customer relationships
5.5 years
 
87,623

(6,883
)
80,740

Other
3.5 years
 
4,362

(991
)
3,371

Content library (acquired in business combination)
1.5 years
 
15,245

(6,776
)
8,469

Content library (acquired post business combination)
1.5 years
(1)
7,101

(1,773
)
5,328

Total intangible assets
 
 
$
136,553

$
(18,008
)
$
118,545

(1) Useful estimate based upon the content library acquired in business combination, which approximates historical experience.

Content library is classified on a standalone basis on the Company's September 30, 2013 condensed balance sheet. The Company expects to record amortization of the intangible assets as follows (in thousands):

Year ending December 31,       
Amount
2013 (3 months ended)
$
6,287

2014
28,364

2015
15,658

2016
14,301

2017
12,958

Thereafter
40,977

Total
$
118,545



The Company recorded amortization expense of $7.6 million and $0.0 million during the three months ended September 30, 2013 and 2012, respectively, and $18.0 million and $0.0 million during the nine months ended September 30, 2013 and 2012, respectively. Amortization expense excludes the amortization of the content library, which is included in cost of sales.