Rosetta Stone 2009 Annual Report Download - page 96
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Table of Contents
ROSETTA STONE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. GOODWILL (Continued)
The following table represents the balance and changes in goodwill for the years ended December 31, 2009, 2008, 2007 and 2006 (in thousands):
Balance as of January 1, 2006 $ —
Rosetta Stone Ltd. acquisition 34,199
Balance as of December 31, 2006 $ 34,199
No acquisition activity —
Balance as of December 31, 2007 $ 34,199
No acquisition activity —
Balance as of December 31, 2008 $ 34,199
SGLC International Co. LTD. acquisition 620
Balance as of December 31, 2009 $ 34,819
Effect of change in foreign currency rate 19
Balance as of December 31, 2009 $ 34,838
7. INTANGIBLE ASSETS
Intangible assets consisted of the following items as of the dates indicated (in thousands):
December 31, 2009 December 31, 2008
Gross
Carrying
Amount Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount Accumulated
Amortization
Net
Carrying
Amount
Trade name / trademark $ 10,607 $ — $ 10,607 $ 10,607 $ — $ 10,607
Core technology 2,453 (2,453) — 2,453 (2,453) —
Customer relationships 10,842 (10,747) 95 10,739 (10,706) 33
Website 12 (10) 2 12 (7) 5
Total $ 23,914 $ (13,210)$ 10,704 $ 23,811 $ (13,166)$ 10,645
The Company recorded intangible assets of $23.8 million, associated with the acquisition of Rosetta Stone Ltd. in January 2006, and $100,000 with the
acquisition of certain assets of SGLC International Co. Ltd. in November 2009. The Company did not record any additions to intangible assets during 2008.
The estimated lives of the acquired core technology and customer relationships are between 18 to 36 months. The intangible asset associated with the trade
name and trademark has an indefinite useful life. The estimated life of the website rights is 60 months. The Company computes
F-20