Rosetta Stone 2014 Annual Report Download - page 83
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Table of Contents
Amortization expense consisted of the following (in thousands):
Included in cost of revenue:
Cost of product revenue
$ 377
$ —
$ —
Cost of subscription and service revenue
209
244
—
Total included in cost of revenue
586
244
—
Included in operating expenses:
Sales and marketing
3,677
1,028
—
Research & development
2,000
550
40
General and administrative
—
—
—
Total included in operating expenses
5,677
1,578
40
Total
$ 6,263
$ 1,822
$ 40
The following table summarizes the estimated future amortization expense related to intangible assets as of December 31, 2014 (in thousands):
2015
$ 5,395
2016
4,913
2017
4,417
2018
3,803
2019
1,532
Thereafter
3,710
Total
$ 23,770
The Company also routinely reviews indefinite-lived intangible assets and long-lived intangible assets for potential impairment as part of the
Company’s internal control framework. As an indefinite-lived intangible asset, the Rosetta Stone tradename was evaluated as of December 31, 2014 to
determine if indicators of impairment exist. In connection with the fourth quarter of 2014 goodwill impairment test performed for the North America
Consumer reporting unit, the Company also performed a quantitative impairment review of the trade name indefinite-lived intangible asset and concluded it
was not impaired. Additionally, all long-lived intangible assets were evaluated to determine if indicators of impairment exist and the Company concluded
that there are no potential indicators of impairment.
The following table summarizes other current liabilities (in thousands):
Accrued marketing expenses
$ 31,985
$ 19,885
Accrued professional and consulting fees
2,804
4,570
Sales return reserve
3,570
4,834
Sales, withholding, and property taxes payable
5,875
3,968
Accrued purchase price of business acquisition
1,688
1,688
Other
10,235
6,991
Total other current liabilities
$ 56,157
$ 41,936
F-26