Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, net

v2.4.1.9
Intangible Assets, net
 3 Months Ended
Mar. 31, 2015
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 years (weighted average of 5.7 years).

Intangible assets, net at March 31, 2015, consisted of the following (in thousands):
 
 
 
March 31, 2015
 
Weighted Average Useful Lives
 
Gross Carrying Value
Accumulated Amortization
Net Carrying Value
Intangible assets:
 
 
 
 
 
Definite life:
 
 
 
 
 
Existing technology - software
7 years
 
$
2,575

$
(797
)
$
1,778

Existing technology - games
5 years
 
12,331

(5,343
)
6,988

Developed technology
8 years
 
7,317

(1,372
)
5,945

Customer relationships
7.2 years
 
119,879

(35,143
)
84,736

Other
2.5 years
 
7,310

(3,800
)
3,510

Content library (acquired post Business Combination)
1.5 years
(1) 
34,735

(22,278
)
12,457

Content library (acquired in the Business Combination)
1.5 years
 
14,298

(14,298
)
—

 
 
 
$
198,445

$
(83,031
)
$
115,414

Currency translation adjustment
 
 
 
 
(130
)
Total intangible assets
 
 
 
 
$
115,284



 
 
 
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

    
(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 March 31, 2015 and December 31, 2014. 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 (remaining nine months)
$
26,927

2016
25,505

2017
19,481

2018
15,874

2019
10,992

Thereafter
16,505

Total
$
115,284


The Company recorded amortization expense, excluding amortization of content library (acquired post business combination) of $6.1 million and $7.8 million for the three months ended March 31, 2015 and 2014, respectively. Amortization expense excludes the amortization of the content library, which is included in cost of sales.