Anuvu Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Intangible Assets, net

Intangible Assets, net

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

As a result of the business combinations in 2013 and 2014, 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).

Intangible assets, net consisted of the following as of December 31, 2014 and December 31, 2013 (in thousands):



			December 31, 2014
	Weighted Average Useful Lives		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Intangible assets:
Definite life:
Existing technology - software	7 years		$	2,575	$	705	$	1,870
Existing technology - games	5 years		12,331		4,727		7,604
Developed technology	8 years		7,317		1,143		6,174
Customer relationships	7.2 years		119,879		30,437		89,442
Other	2.5 years		7,319		3,448		3,871
Content library (acquired in business combination)	1.5 years		14,298		14,148		150
Content library (acquired post business combination)	1.5 years	(1)	31,949		18,586		13,363
Total intangible assets			$	195,668	$	73,194	$	122,474



			December 31, 2013
	Weighted Average Useful Lives		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Intangible assets:
Definite life:
Existing technology - software	7 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 $9.6 million and $6.6 million is classified on a standalone basis on the Company's December 31, 2014 and 2013 balance sheet, respectively. 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
2015	$	33,974
2016	25,679
2017	19,464
2018	15,874
2019	10,992
Thereafter	16,491
Total	$	122,474

The Company recorded amortization expense of $27.2 million, $17.3 million, and $0.0 million for the year ended December 31, 2014, 2013, and 2012, respectively. In addition, amortization expense of $2.7 million and $13.2 million from the content library is included in cost of sales in the year ended December 31, 2014 and 2013.