Digital River 2006 Annual Report Download - page 93

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The changes in the net carrying amount of goodwill for the years ended December 31, 2006 and 2005 are
as follows (in thousands):
Total
Balance as of December 31, 2004 .......................................... $148,086
Goodwill from acquisitions and earn-outs .................................... 49,096
Adjustments(1) ........................................................ (1,883)
Balance as of December 31, 2005 .......................................... $195,299
Goodwill from acquisitions and earn-outs .................................... 35,883
Adjustments(1) ........................................................ 12,617
Balance as of December 31, 2006 .......................................... $243,799
(1) Adjustments to goodwill during the year ended December 31, 2006 and December 31, 2005, resulted pri-
marily from foreign currency translation adjustments relating to goodwill associated with our current and
prior period acquisitions.
Intangible Assets
Information regarding our other intangible assets is as follows (in thousands):
Carrying Amount
Gross
Accumulated
Amortization
Carrying Amount
Net
As of December 31, 2006
Customer relationships .................... $43,072 $28,890 $14,182
Non-compete agreements................... 5,251 5,017 234
Technology/tradename ..................... 22,875 16,185 6,690
Total .................................. $71,198 $50,092 $21,106
Carrying Amount
Gross
Accumulated
Amortization
Carrying Amount
Net
As of December 31, 2005
Customer relationships .................... $34,666 $21,103 $13,563
Non-compete agreements................... 5,121 4,300 821
Technology/tradename ..................... 17,065 11,395 5,670
Total .................................. $56,852 $36,798 $20,054
The components of intangible assets acquired during the years ended December 31, 2006, 2005 and 2004,
are as follows (in thousands). No significant residual value is estimated for these assets.
Amount
Weighted
Average
Life Amount
Weighted
Average
Life Amount
Weighted
Average
Life
2006(1) 2005 2004
Customer relationships ........ $ 8,110 8 years $ 9,386 4 years $ 8,918 3 years
Non-compete agreements ...... 40 4years — — 1,284 3 years
Technology/tradename ........ 5,635 4 years 2,196 4 years 7,191 3 years
Total ..................... $13,785 6 years $11,582 4 years $17,393 3 years
89
DIGITAL RIVER, INC.
Notes to Consolidated Financial Statements — (Continued)