Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangible Assets

v3.3.1.900
Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Goodwill and Identified Intangible Assets
Changes in the carrying amount of goodwill during the years ended December 31, 2015 and 2014, were as follows, in thousands:
Balance at January 1, 2014
 
$
152,422

Goodwill acquired
 
40,341

Other
 
615

Balance at December 31, 2014
 
193,378

Goodwill acquired
 
26,719

Balance at December 31, 2015
 
$
220,097


There was no impairment of goodwill recorded in 2015, 2014, or 2013.
Changes in identified intangible assets during the years ended December 31, 2015 and 2014 were as follows:
 
Weighted Average Amortization Period
 
December 31, 2014
 
Additions
 
Impairments
 
Transfers
 
Other
 
December 31, 2015
 
(in years)
 
(in thousands)
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Developed technologies
3.2
 
$
55,212

 
$
14,194

 
$

 
$

 
$
(27
)
 
$
69,379

Customer relationships
9.1
 
86,753

 
9,770

 

 

 

 
96,523

Vendor relationships
7.0
 
5,650

 

 

 

 

 
5,650

Trade names
6.9
 

 
83

 

 
5,066

 

 
5,149

Total finite-lived intangible assets
6.6
 
147,615

 
24,047

 

 
5,066

 
(27
)
 
176,701

Accumulated amortization
 
 
(88,880
)
 
(22,002
)
 

 

 

 
(110,882
)
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade names
 
 
41,350

 

 
(20,801
)
 
(5,066
)
 
(22
)
 
15,461

Intangible assets, net
 
 
$
100,085

 
2,045

 
(20,801
)
 

 
(49
)
 
$
81,280

 
Weighted Average Amortization Period
 
December 31, 2013
 
Additions
 
Impairments
 
Transfers
 
Other
 
December 31, 2014
 
(in years)
 
(in thousands)
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Developed technologies
3.2
 
$
45,014

 
$
10,315

 
$

 
$

 
$
(117
)
 
$
55,212

Customer relationships
9.0
 
85,823

 
930

 

 

 

 
86,753

Vendor relationships
7.0
 
5,650

 

 

 

 

 
5,650

Total finite-lived intangible assets
6.7
 
136,487

 
11,245

 

 

 
(117
)
 
147,615

Accumulated amortization
 
 
(68,164
)
 
(20,716
)
 

 

 

 
(88,880
)
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade names
 
 
40,492

 
1,129

 
(304
)
 

 
33

 
41,350

Intangible assets, net
 
 
$
108,815

 
(8,342
)
 
(304
)
 

 
(84
)
 
$
100,085

Amortization expense for finite-lived intangible assets totaled $22.0 million, $20.7 million, and $16.6 million during the years ended December 31, 2015, 2014, and 2013, respectively.
The following table sets forth the estimated amortization of intangible assets for the years ending December 31, in thousands:
2016
$
20,518

2017
14,691

2018
9,674

2019
6,805

2020
5,606


We test intangible assets with indefinite lives for impairment on an annual basis in the fourth quarter of each year. As a result of the annual analysis, we identified an impairment of the MyNewPlace trade name in the amount of $0.3 million in the fourth quarter of 2014. The impairment was the result of declines in actual and anticipated lead-generation revenues attributable to historically high occupancy levels in the multifamily market.
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 12 for discussion of the methodology and inputs utilized by the Company to estimate the fair value of these indefinite-lived trade names.