Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, net

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Intangible Assets, net
 6 Months Ended
Jun. 30, 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 5.5 years).

Intangible assets, net at June 30, 2015, consisted of the following (in thousands, except for useful lives):
 
 
 
June 30, 2015
 
Weighted Average Useful Lives
 
Gross Carrying Value
Accumulated Amortization
Net Carrying Value
Intangible assets:
 
 
 
 
 
Definite life:
 
 
 
 
 
Existing technology - software
7 years
 
$
2,575

$
(889
)
$
1,686

Existing technology - games
5 years
 
12,331

(5,960
)
6,371

Developed technology
8 years
 
7,317

(1,601
)
5,716

Customer relationships
7.2 years
 
119,879

(39,722
)
80,157

Other
2.5 years
 
7,264

(4,224
)
3,040

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

(14,298
)
—

Content library (acquired post Business Combination)
1.5 years
(1) 
36,349

(23,802
)
12,547

 
 
 
$
200,013

$
(90,496
)
$
109,517

Currency translation adjustment
 
 
 
 
(197
)
Total intangible assets
 
 
 
 
$
109,320


Intangible assets, net at December 31, 2014, consisted of the following (in thousands, except for useful lives):

 
 
 
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 life estimate based upon the content library acquired in the Business Combination, which approximates historical experience.

The content library that is expected to be licensed and to generate revenues within the next twelve months is classified as Content library, current, on the Company's condensed consolidated balance sheets as of June 30, 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 six months)
$
16,247

2016
30,235

2017
19,476

2018
15,871

2019
10,992

Thereafter
16,499

Total
$
109,320


The Company recorded amortization expense, excluding amortization of content library (acquired post business combination) of $6.0 million and $12.0 million for the three and six months ended June 30, 2015, respectively, and $6.6 million and $14.4 million during the three and six months ended June 30, 2014, respectively. Amortization expense excludes the amortization of the content library, which is included in cost of sales.