Annual report pursuant to Section 13 and 15(d)

Intangible Assets, net

v2.4.0.8
Intangible Assets, net
 12 Months Ended
Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, net
Intangible Assets, net

As a result of the business combinations in 2013, the Company acquired definite-lived intangible assets that are primarily amortized on a straight-line basis, which approximate their expected cash flow patterns. The Company's definite-lived intangible assets have assigned useful lives ranging from 1.5 to 8 years (weighted average of 6.0 years). The Company had no material indefinite-lived intangible assets at December 31, 2012.

Intangible assets, net at December 31, 2013, consisted of the following (in thousands).
 
 
 
December 31, 2013
 
Weighted Average Useful Lives
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Carrying Value
Intangible assets:
 
 
 
 
 
 
 
Definite life:
 
 
 
 
 
 
 
Existing technology - software
5 years
 
$
2,575

 
$
(333
)
 
$
2,242

Existing technology - games
5 years
 
12,331

 
(2,041
)
 
10,290

Developed technology
8 years
 
7,317

 
(229
)
 
7,088

Customer relationships
7.2 years
 
119,879

 
(11,534
)
 
108,345

Other
2.5 years
 
4,460

 
(1,353
)
 
3,107

Content library (acquired in business combination)
1.5 years
 
14,298

 
(11,459
)
 
2,839

Content library (acquired post business combination)
1.5 years
(1)
12,630

 
(3,564
)
 
9,066

Total intangible assets
 
 
$
173,490

 
$
(30,513
)
 
$
142,977

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

Current content library of approximately $6.6 million is classified on a standalone basis on the Company's December 31, 2013 balance sheet. The remainder of content library is classified and included within the intangible asset amount. The Company expects to record amortization of the intangible assets as follows (in thousands):

Year ending December 31,       
Amount
2014
$
35,888

2015
23,889

2016
21,357

2017
19,280

2018
15,326

Thereafter
27,236

Total
$
142,977



The Company recorded amortization expense of $17.3 million, $0.0 million, and $0.0 million for the year ended December 31, 2013, 2012 and 2011, respectively. In addition, amortization expense of $13.2 million from the content library is included in cost of sales in the year ended December 31, 2013.