Classmates.com 2010 Annual Report Download - page 130

Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
4. GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS (Continued)
The Company's acquired trademarks and trade names related to the acquisition by the Company of FTD in August 2008, prior to
impairment charges, are indefinite-lived and, accordingly, there is no associated amortization expense or accumulated amortization. At
December 31, 2010 and 2009, the FTD trademarks and trade names after impairment and foreign currency translation adjustments totaled
$156.7 million and $158.2 million, respectively.
Amortization expense related to intangible assets for the years ended December 31, 2010, 2009 and 2008 was $32.2 million, $34.8 million
and $18.4 million, respectively.
Estimated future intangible asset amortization expense at December 31, 2010 was as follows (in thousands):
5. CREDIT AGREEMENTS
UOL Credit Agreement
In connection with the acquisition by the Company of FTD in August 2008, United Online, Inc. entered into a $60 million senior secured
credit agreement with Silicon Valley Bank (the "UOL Credit Agreement") and borrowed $60 million thereunder. The net proceeds of the term
loan under the UOL Credit Agreement were used to finance, in part, the acquisition of FTD. In April 2010, United Online, Inc. paid
$14.7 million to retire this credit facility.
FTD Credit Agreement
In connection with the FTD acquisition, in August 2008, UNOLA Corp., then an indirect wholly-owned subsidiary of United Online, Inc.,
which subsequently merged into FTD Group, Inc., entered into a $425 million senior secured credit agreement with Wells Fargo Bank National
Association, as Administrative Agent (the "FTD Credit Agreement"), consisting of (i) a term loan A facility of up to $75 million, (ii) a term loan
B facility of up to $300 million, and (iii) a revolving credit facility of up to $50 million. The interest rate set forth in the FTD Credit Agreement
for loans made under the revolving credit facility and term loan A facility is either the prime rate plus 2.50% per annum, or LIBOR plus 3.50%
per annum (with a LIBOR floor of 3.00%), in each case, with step-downs in the
F-24
December 31, 2009
Gross
Value
Accumulated
Amortization
Net
Pay accounts and free
accounts
$
100,825
$
(88,935
)
$
11,890
Customer contracts and
relationships
112,575
(31,856
)
80,719
Trademarks and trade
names
184,020
(14,912
)
169,108
Software and technology
46,726
(16,279
)
30,447
Rights, content and
intellectual property
4,602
(4,246
)
356
Total
$
448,748
$
(156,228
)
$
292,520
Year Ending December 31,
Total
2011
2012
2013
2014
2015
Thereafter
Estimated
amortization of
intangible
assets
$
106,099
$
31,082
$
30,056
$
27,321
$
15,236
$
1,071
$
1,333