Shutterfly 2012 Annual Report Download - page 74
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Purchased technology is amortized over a period ranging from two to sixteen years. Customer
relationships are amortized over a period ranging from two to seven years. Licenses and other is amortized
over a period ranging from two to five years.
Intangible asset amortization expense for the years ended December 31, 2012, 2011 and 2010 was
$19,739,000, $11,375,000 and $1,849,000, respectively. Amortization of existing intangible assets is
estimated to be as follows (in thousands):
Year Ending:
2013 .............................................................. $ 23,911
2014 .............................................................. 22,980
2015 .............................................................. 20,191
2016 .............................................................. 14,019
2017 .............................................................. 11,530
Thereafter .......................................................... 29,638
$ 122,269
Goodwill
Changes in the carrying amount of goodwill are as follows (in thousands):
Balance, December 31, 2010 ............................................. $ 11,163
Acquisition of business ............................................... 329,245
Goodwill adjustments ................................................ —
Balance, December 31, 2011 ............................................. 340,408
Acquisition of business ............................................... 17,941
Goodwill adjustments ................................................ —
Balance, December 31, 2012 ............................................. $ 358,349
The increase in goodwill for the year ended December 31, 2012 was a result of the acquisitions of
Photoccino, Ltd., Penguin Digital, Inc., and ThisLife.com, Inc.
The increase in goodwill for the year ended December 31, 2011 was a result of the acquisition of Tiny
Prints in April 2011.
Accrued Liabilities
December 31,
2012 2011
(in thousands)
Accrued production costs ..................................... $ 22,534 $ 16,939
Accrued marketing expenses ................................... 21,371 19,072
Accrued income and sales tax .................................. 15,002 11,106
Accrued compensation ....................................... 13,904 5,485
Accrued consulting .......................................... 4,200 2,347
Accrued purchases .......................................... 3,685 871
Accrued fixed assets ......................................... 1,554 633
Accrued other ............................................. 6,222 2,818
$ 88,472 $ 59,271
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