Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, net

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Intangible Assets, net
 6 Months Ended
Jun. 30, 2014
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 5.8 years).

Intangible assets, net at June 30, 2014, consisted of the following (in thousands):
 
 
 
June 30, 2014
 
Weighted Average Useful Lives
 
Gross Carrying Value
Accumulated Amortization
Net Carrying Value
Intangible assets:
 
 
 
 
 
Definite life:
 
 
 
 
 
Existing technology - software
7 years
 
$
2,575

$
(521
)
$
2,054

Existing technology - games
5 years
 
12,331

(3,494
)
8,837

IPR&D
8 years
 
7,317

(686
)
6,631

Customer relationships
7.1 years
 
119,879

(20,980
)
98,899

Other
3.5 years
 
5,814

(2,419
)
3,395

Content library (acquired in the Business Combination)
1.5 years
 
23,349

(10,880
)
12,469

Content library (acquired post business combination)
1.5 years
(1)
14,298

(13,250
)
1,048

Total intangible assets
 
 
$
185,563

$
(52,230
)
$
133,333

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

Content library that is expected to be licensed and generates revenues within the next twelve months is classified as Content library, current, on the Company's condensed consolidated balance sheets as of June 30, 2013 and December 31, 2013. 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 (remaining six months)
$
19,603

2015
26,666

2016
24,361

2017
19,343

2018
15,757

Thereafter
27,603

Total
$
133,333


The Company recorded amortization expense, excluding amortization of content library (acquired post business combination) of $6.6 million and $14.4 million for the three and six months ended June 30, 2014, respectively, and $6.3 million and $10.4 million during the three and six months ended June 30, 2013, respectively. Amortization expense excludes the amortization of the content library, which is included in cost of sales.