Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Identified Intangible Assets

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Goodwill and Identified Intangible Assets
9 Months Ended
Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Identified Intangible Assets
Goodwill and Identified Intangible Assets
The change in the carrying amount of goodwill for the nine months ended September 30, 2015 was as follows:
 
Nine Months Ended September 30, 2015
 
(in thousands)
Balance at January 1, 2015
$
193,378

Goodwill acquired
26,761

Other
(35
)
Balance at September 30, 2015
$
220,104


Identified intangible assets consisted of the following at September 30, 2015 and December 31, 2014:
 
 
 
September 30, 2015
 
December 31, 2014
 
Weighted Average Amortization Period
 
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
(in years)
 
(in thousands)
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Developed technologies
3.2
 
$
69,615

 
$
(47,376
)
 
$
22,239

 
$
55,212

 
$
(39,343
)
 
$
15,869

Customer relationships
9.1
 
96,523

 
(52,061
)
 
44,462

 
86,753

 
(44,264
)
 
42,489

Vendor relationships
7.0
 
5,650

 
(5,650
)
 

 
5,650

 
(5,273
)
 
377

Trade names
6.9
 
5,149

 
(28
)
 
5,121

 

 

 

Total finite-lived intangible assets
6.7
 
176,937

 
(105,115
)
 
71,822

 
147,615

 
(88,880
)
 
58,735

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade names
 
 
15,465

 

 
15,465

 
41,350

 

 
41,350

Total identified intangible assets
 
 
$
192,402

 
$
(105,115
)
 
$
87,287

 
$
188,965

 
$
(88,880
)
 
$
100,085


Amortization expense related to finite-lived intangible assets was $6.1 million and $5.4 million for the three months ended, and $16.3 million and $15.5 million for the nine months ended September 30, 2015 and 2014, respectively.
In March 2015, the Company completed the integration of the InstaManager and Kigo platforms into a single solution marketed under the Kigo name. Subsequent to this integration, the Company discontinued the use of the InstaManager trade name to market or identify the software. Due to this change in circumstance, the Company evaluated the InstaManager trade name for impairment and concluded an impairment in the amount of $0.5 million existed at March 31, 2015.
In connection with the preparation of the third quarter 2015 financial statements, the Company identified indicators, requiring the assessment of certain indefinite-lived trade names for impairment, primarily associated with the Company's 2011 acquisition of MyNewPlace. Identified indicators included declines in actual and anticipated lead-generation revenues and a change in the Company's long-term marketing strategy. As a result, the Company analyzed these intangible assets and recorded a $20.3 million impairment charge during the third quarter of 2015, representing the amount by which the carrying value of the indefinite-lived trade names exceeded their estimated fair value. Given the change in the Company's long-term marketing strategy and anticipated use of the trade names, the remaining balance was reclassified to finite-lived intangible assets as of September 30, 2015, which will be amortized on a straight-line basis over an estimated useful life of seven years. See Note 11 for discussion of the methodology and inputs utilized by the Company to estimate the fair value of these indefinite-lived trade names.
The above impairment charges are included in "Impairment of identified intangible assets" in the accompanying Condensed Consolidated Statements of Operations.