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Table of Contents EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
8. Goodwill and Other Intangible Assets
Goodwill
The changes in the carrying amount of goodwill by operating segment during the year ended December 31, 2014 were as follows:
The goodwill adjustments during the year ended December 31, 2014
resulted from adjustments in the fair value of assets and liabilities assumed
in acquisitions that were not deemed material to retrospectively adjust amounts recorded at the acquisition date.
Other Intangible Assets
The following table presents the components of the Company’s acquired identifiable intangible assets included in the accompanying
Consolidated Balance Sheets as of December 31, 2013 and 2014 :
Definite-
lived intangible assets are amortized over their estimated useful lives. The Company amortizes its customer relationships using the
straight-
line method to match the estimated cash flow generated by such assets, and amortizes its developed technology and trade names using
the straight-
line method because a pattern to which the expected benefits will be consumed or otherwise used up could not be reliably
determined. As of December 31, 2014 , the weighted average amortization periods were 5.2 years for customer relationships, 3.8
years for
developed technology and software, 5.0 years for trade names and 3.6 years for other identifiable intangible assets.
71
Consumer
Services
Segment
Business
Services
Segment
Total
(in thousands)
Balance as of December 31, 2013
Goodwill
$
88,920
$
394,873
$
483,793
Accumulated impairment loss
—
(
344,578
)
(344,578
)
88,920
50,295
139,215
Goodwill adjustments
—
(
1,464
)
(1,464
)
Balance as of December 31, 2014
Goodwill
88,920
393,409
482,329
Accumulated impairment loss
—
(
344,578
)
(344,578
)
$
88,920
$
48,831
$
137,751
As of December 31, 2013
As of December 31, 2014
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
(in thousands)
Customer relationships
$
366,651
$
(219,030
)
$
147,621
$
359,187
$
(271,968
)
$
87,219
Developed technology and software
26,261
(19,194
)
7,067
26,261
(22,096
)
4,165
Trade names
9,121
(8,796
)
325
1,521
(1,521
)
—
Other
1,800
(1,385
)
415
1,800
(1,694
)
106
Other intangible assets, net
$
403,833
$
(248,405
)
$
155,428
$
388,769
$
(297,279
)
$
91,490