NOTE 7: GOODWILL AND INTANGIBLE ASSETS, NET
The following table presents the changes in goodwill for the periods presented:
| December 31, | ||||||||
| 2013 | 2012 | |||||||
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Beginning balance as of January 1 |
$ | 471,684 | $ | 466,892 | ||||
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Additions (1) |
29,551 | 3,043 | ||||||
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Purchase price allocation adjustments (2) |
(873 | ) | — | |||||
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Foreign exchange translation adjustment |
1,622 | 1,749 | ||||||
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Ending balance as of December 31 |
$ | 501,984 | $ | 471,684 | ||||
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| (1) | The additions to goodwill relate to our 2013 business acquisitions. See “Note 3— Acquisitions,” above for further information. |
| (2) | Purchase price allocation adjustments related to our 2012 acquisition, primarily a tax related adjustment for acquired net operating loss carryforwards, or NOL’s. |
Intangible assets, which were acquired in business combinations and recorded at fair value on the date of purchase, consist of the following for the periods presented:
| December 31, | ||||||||
| 2013 | 2012 | |||||||
| (In thousands) | ||||||||
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Intangible assets with definite lives |
$ | 36,214 | $ | 21,382 | ||||
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Less: accumulated amortization |
(14,672 | ) | (13,492 | ) | ||||
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Intangible assets with definite lives, net |
21,542 | 7,890 | ||||||
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Intangible assets with indefinite lives |
30,300 | 30,300 | ||||||
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| $ | 51,842 | $ | 38,190 | |||||
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Amortization expense was $5.7 million, $6.1 million, and $7.5 million, respectively, for the years ended December 31, 2013, 2012 and 2011.
Our indefinite-lived assets relate to trade names and trademarks. Refer to “Note 2—Significant Accounting Policies” above for a discussion of our annual indefinite-lived intangible asset impairment assessment.
The following table presents the components of our intangible assets with definite lives for the periods presented:
| December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
| Weighted Ave Remaining Life (in years) |
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
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| (In thousands) | (In thousands) | |||||||||||||||||||||||||||
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Trade names and trademarks |
8.4 | $ | 17,975 | $ | (7,462 | ) | $ | 10,513 | $ | 14,431 | $ | (9,029 | ) | $ | 5,402 | |||||||||||||
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Subscriber relationships |
6.1 | 13,835 | (5,858 | ) | 7,977 | 5,617 | (3,511 | ) | 2,106 | |||||||||||||||||||
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Technology and other |
2.7 | 4,404 | (1,352 | ) | 3,052 | 1,334 | (952 | ) | 382 | |||||||||||||||||||
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Total |
6.7 | $ | 36,214 | $ | (14,672 | ) | $ | 21,542 | $ | 21,382 | $ | (13,492 | ) | $ | 7,890 | |||||||||||||
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The estimated future amortization expense related to intangible assets with definite lives as of December 31, 2013, assuming no subsequent impairment of the underlying assets, is as follows, in thousands:
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2014 |
5,201 | |||
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2015 |
3,264 | |||
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2016 |
2,716 | |||
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2017 |
2,292 | |||
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2018 |
2,130 | |||
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2019 and thereafter |
5,939 | |||
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Total |
$ | 21,542 | ||
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