NOTE 6—Identifiable Intangible Assets
Identifiable intangible assets consist primarily of purchased technologies, customer and reseller relationships, trademarks, copyrights and patents and covenants not to compete which are amortized over the estimated useful life, generally on a straight-line basis, with the exception of customer and reseller relationships which are generally amortized over the greater of straight-line or the related asset’s pattern of economic benefit. Useful lives range from three to ten years. As of February 28, 2013 and February 29, 2012, trademarks with an indefinite estimated useful life totaled $9.3 million and $9.5 million, respectively. The following is a summary of identifiable intangible assets (in thousands):
| February 28, 2013 | February 29, 2012 | |||||||||||||||||||||||
| Gross Amount |
Accumulated Amortization |
Net Amount |
Gross Amount |
Accumulated Amortization |
Net Amount |
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Trademarks, copyrights and patents |
$ | 94,020 | $ | (27,412 | ) | $ | 66,608 | $ | 62,851 | $ | (20,491 | ) | $ | 42,360 | ||||||||||
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Purchased technologies |
79,201 | (46,507 | ) | 32,694 | 58,781 | (39,390 | ) | 19,391 | ||||||||||||||||
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Customer and reseller relationships |
89,959 | (53,391 | ) | 36,568 | 83,478 | (44,591 | ) | 38,887 | ||||||||||||||||
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Covenants not to compete |
10,516 | (4,143 | ) | 6,373 | 3,473 | (3,473 | ) | — | ||||||||||||||||
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Identifiable intangible assets |
$ | 273,696 | $ | (131,453 | ) | $ | 142,243 | $ | 208,583 | $ | (107,945 | ) | $ | 100,638 | ||||||||||
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The balances in identifiable intangible assets as of February 28, 2013 include $30.6 million of identifiable intangible assets acquired as part of business combinations completed during the year ended February 28, 2013. See NOTE 3—Business Combinations for further discussion related to business combinations.
Patents purchased from a related party during the year ended February 28, 2013 totaled $22.4 million. See NOTE 7—Other Assets, Net for further discussion.
Amortization expense associated with identifiable intangible assets recognized in the Company’s Consolidated Financial Statements for the years ended February 28, 2013, February 29, 2012 and February 28, 2011 is summarized as follows (in thousands):
| Year Ended February 28, 2013 |
Year Ended February 29, 2012 |
Year Ended February 28, 2011 |
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Cost of revenue |
$ | 5,943 | $ | 3,533 | $ | 3,274 | ||||||
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Sales and marketing |
8,416 | 8,348 | 8,322 | |||||||||
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Research and development |
3,836 | 4,194 | 4,025 | |||||||||
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General and administrative |
5,328 | 3,674 | 3,340 | |||||||||
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Total amortization expense |
$ | 23,523 | $ | 19,749 | $ | 18,961 | ||||||
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As of February 28, 2013, future amortization expense on existing intangibles is as follows (in thousands):
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Fiscal Year |
Amortization Expense of Intangible Assets |
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2014 |
$ | 25,419 | ||
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2015 |
22,361 | |||
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2016 |
16,681 | |||
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2017 |
13,819 | |||
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2018 |
11,041 | |||
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Thereafter |
43,648 | |||
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Total amortization expense |
$ | 132,969 | ||
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