Enom 2014 Annual Report Download - page 83

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F-19
Based upon the current amount of intangible assets subject to amortization, the estimated amortization expense for the next five
years as of December 31, 2014 is as follows (in thousands):
Estimated
Amortization
Year ending December 31,
2015 ..................................................................................................................... $ 15,910
2016 ..................................................................................................................... $ 10,463
2017 ..................................................................................................................... $ 6,546
2018 ..................................................................................................................... $ 3,607
2019 ..................................................................................................................... $ 1,202
Thereafter .................................................................................................................. $2,807
5. Goodwill
The following table presents the changes in our goodwill balance (in thousands):
Balance at December 31, 2012 ........................................................................................ $ 266,349
Goodwill arising from acquisitions............................................................................... 81,135
Working capital adjustment .......................................................................................... (102)
Balance at December 31, 2013 ........................................................................................ 347,382
Goodwill arising from acquisitions............................................................................... 10,358
Goodwill decreasing from dispositions ........................................................................ (12,070)
Spin-off ......................................................................................................................... (103,042)
Goodwill impairment .................................................................................................... (232,270)
Balance at December 31, 2014 ........................................................................................ $ 10,358
The increase of goodwill in 2014 is attributable to the acquisition of Saatchi Online as detailed in Note 15 - Business
Acquisitions. The increase of goodwill in 2013 is attributable to the acquisition of Creativebug in March 2013, and Society6 in June
2013 as detailed in Note 15 - Business Acquisitions.
The reduction in goodwill due to dispositions resulted from the sales of our Creativebug and CoveritLive businesses in
July 2014.
In August 2014, we completed the Separation of Rightside and the Distribution, and we no longer record goodwill related to
Rightside on our balance sheet (refer to Note 1 for additional information).
We test goodwill for impairment in the fourth quarter of each year unless there are interim indicators that suggest that it is more
likely than not that goodwill may be impaired. For the reasons described in Note 2 above, we performed an interim assessment of
impairment of the goodwill in our content and media reporting unit in the third quarter of 2014. In performing the interim impairment
assessment, based on our analyses, we determined that the implied fair value of goodwill was substantially lower than the carrying
value of goodwill for the content and media reporting unit and as a result, we determined that the implied fair value of the goodwill in
the content and media reporting unit was zero. Accordingly, we recorded $232.3 million for the goodwill impairment charge in the
third quarter of 2014 (refer to Note 2 for additional information).
6. Other Balance Sheet Items
Accounts receivable consisted of the following (in thousands):
December 31, December 31,
2014
2013
Accounts receivable - trade ...................................................................... 14,504 29,640
Receivables from registries ...................................................................... - 3,661
Accounts receivable , net ....................................................................... $ 14,504 $ 33,301