Goodwill and Intangible Assets
 6 Months Ended
Jun. 30, 2012
Goodwill and Intangible Assets [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

NOTE 2—GOODWILL AND INTANGIBLE ASSETS

Goodwill activity for the six months ended June 30, 2012 is shown below:

 

         

Balance, December 31, 2011

   $ 595,522  

Acquisition of certain assets and liabilities of various entities

     2,100  

Adjustment during the measurement period relating to the acquisition of InsWeb Corporation

     559  
   

 

 

  

Balance, June 30, 2012

   $ 598,181  
   

 

 

  

Intangible assets consist primarily of domain names and URLs, customer relationships, affiliate relationships and developed technologies. Intangible assets are being amortized over their estimated useful lives on both straight-line and accelerated bases. During the three months ended June 30, 2012, the Company entered into a three year exclusive arrangement with one of its partners. In connection with the new contract, the Company recognized a $5 million intangible asset, valued based on the relative fair value of estimated contract costs, related to certain exclusive rights and is amortizing such asset over a period of three years in proportion to the income derived from such asset. The Company recorded amortization expense of $252,000 for the three and six months ended June 30, 2012.

 

Intangible assets subject to amortization and their weighted average amortization periods were as follows as of June 30, 2012:

 

                                 
(In thousands)   Cost     Accumulated
Amortization		     Net     Weighted Average
Amortization Period
Years		  

Trademarks and URLs

   $ 227,721     $ (24,775 )    $ 202,946       18.2  

Customer relationships

     228,925       (58,119 )      170,806       8.7  

Affiliate network

     12,790       (10,661 )      2,129       3.9  

Developed technology

     17,469       (9,284 )      8,185       4.7  
   

 

 

    

 

 

    

 

 

          
    $ 486,905     $ (102,839 )    $ 384,066       12.9  
   

 

 

    

 

 

    

 

 

          

Intangible assets subject to amortization and their weighted average amortization periods were as follows as of December 31, 2011:

 

                                 
(In thousands)   Cost     Accumulated
Amortization		     Net     Weighted Average
Amortization Period
Years		  

Trademarks and URLs

   $ 209,283     $ (18,301 )    $ 190,982       19.6  

Customer relationships

     219,911       (45,114 )      174,797       8.9  

Affiliate network

     12,790       (10,576 )      2,214       3.9  

Developed technology

     17,468       (7,221 )      10,247       4.7  
   

 

 

    

 

 

    

 

 

          
    $ 459,452     $ (81,212 )    $ 378,240       13.5  
   

 

 

    

 

 

    

 

 

          

Amortization expense for the three months ended June 30, 2012 and 2011 was $11.1 million and $9.9 million, respectively. Amortization expense for the six months ended June 30, 2012 and 2011 was $21.6 million and $19.8 million, respectively.

Future amortization expense as of June 30, 2012 is expected to be:

 

         
(In thousands)   Amortization
Expense		  

Remainder of 2012

   $ 23,352  

2013

     45,650  

2014

     44,265  

2015

     42,583  

2016

     40,556  

Thereafter

     187,660  
   

 

 

  

Total expected amortization expense for intangible assets

   $ 384,066