|
5. INTANGIBLE ASSETS
Changes in the carrying value of goodwill by reporting unit for the nine months ended September 30, 2011 is as follows (in thousands):
|
|
|
Video and Audio |
|
|
|
|
|
|
|
|
|
|
|
|
Content |
|
|
|
|
|
|
|
|
|
|
|
|
Distribution |
|
Television |
|
Online |
|
Source Ecreative |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2010 |
|
$ |
224,259 |
|
$ |
— |
|
$ |
— |
|
$ |
1,998 |
|
$ |
226,257 |
|
|
Reallocation of goodwill for change in segments |
|
(224,259 |
) |
213,359 |
|
10,900 |
|
— |
|
— |
|
|
Purchase of MIJO |
|
— |
|
19,524 |
|
— |
|
— |
|
19,524 |
|
|
Purchase of MediaMind (preliminary) |
|
— |
|
— |
|
220,866 |
|
— |
|
220,866 |
|
|
Purchase of EyeWonder (preliminary) |
|
— |
|
— |
|
28,888 |
|
— |
|
28,888 |
|
|
Foreign currency translation |
|
— |
|
(1,516 |
) |
— |
|
— |
|
(1,516 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2011 |
|
$ |
— |
|
$ |
231,367 |
|
$ |
260,654 |
|
$ |
1,998 |
|
$ |
494,019 |
|
Intangible assets were as follows at September 30, 2011 and December 31, 2010 (dollars in thousands):
|
|
|
Weighted Average
Amortization
Period (in years) |
|
Gross Assets |
|
Accumulated
Amortization |
|
Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2011 |
|
|
|
|
|
|
|
|
|
|
Customer relationships |
|
9.9 |
|
$ |
291,351 |
|
$ |
(43,523 |
) |
$ |
247,828 |
|
|
Trade name |
|
10.4 |
|
36,574 |
|
(9,415 |
) |
27,159 |
|
|
Developed technology |
|
5.2 |
|
24,608 |
|
(1,862 |
) |
22,746 |
|
|
Noncompetition agreements |
|
4.6 |
|
23,938 |
|
(2,030 |
) |
21,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets |
|
9.3 |
|
$ |
376,471 |
|
$ |
(56,830 |
) |
$ |
319,641 |
|
|
|
|
Weighted Average
Amortization
Period (in years) |
|
Gross Assets |
|
Accumulated
Amortization |
|
Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2010 |
|
|
|
|
|
|
|
|
|
|
Customer relationships |
|
10.9 |
|
$ |
112,843 |
|
$ |
(32,515 |
) |
$ |
80,328 |
|
|
Trade name |
|
14.4 |
|
18,304 |
|
(7,663 |
) |
10,641 |
|
|
Developed technology |
|
5.2 |
|
1,610 |
|
(756 |
) |
854 |
|
|
Noncompetition agreements |
|
5.0 |
|
4,130 |
|
(435 |
) |
3,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets |
|
11.1 |
|
$ |
136,887 |
|
$ |
(41,369 |
) |
$ |
95,518 |
|
Intangible assets are stated at their estimated fair value at the date of acquisition. Subsequently, intangible assets are adjusted for any foreign currency translation gains or losses, impairment losses recognized and amortization expense. Intangible assets are amortized using the straight-line method. Net intangible assets increased during the nine months ended September 30, 2011 as a result of our acquisitions of MIJO, MediaMind and EyeWonder (see Note 4). The intangible assets created in the acquisitions of MediaMind and EyeWonder are preliminary and subject to further review and completion of valuation analyses. Amortization expense related to intangible assets totaled $8.4 million and $2.9 million for the three months ended September 30, 2011 and 2010, respectively, and $15.5 million and $8.7 million for the nine months ended September 30, 2011 and 2010, respectively. The estimated future amortization of our intangible assets as of September 30, 2011 is as follows (in thousands):
|
2011 (3 months) |
|
$ |
11,207 |
|
|
2012 |
|
44,756 |
|
|
2013 |
|
44,546 |
|
|
2014 |
|
43,336 |
|
|
2015 |
|
41,813 |
|
|
2016 |
|
36,528 |
|
|
Thereafter |
|
97,455 |
|
|
|
|
|
|
|
Total |
|
$ |
319,641 |
| |