8x8 2014 Annual Report Download - page 60

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GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill and intangible assets with indefinite useful lives are not amortized. Goodwill represents the excess fair value of consideration
transferred over the fair value of net assets acquired in business combinations. The carrying value of goodwill and indefinite lived intangible
assets are not amortized, but are annually tested for impairment and more often if there is an indicator of impairment. The Company has two
reporting units.
As of January 1, 2014, the Company completed its annual impairment test. No goodwill impairment charges were recorded in the periods
presented.
The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands):
Any changes in goodwill amounts resulting from foreign currency translations are presented as "Other" in the above table.
Intangible assets with finite useful lives are amortized on a straight-line basis over the periods benefited. Amortization expense for the customer
relationship intangible asset is included in sales and marketing expenses. Amortization expense for technology is included in cost of service
revenue. The carrying values of intangible assets were as follows (in thousands):
At March 31, 2014, annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be
the following (in thousands):
55
Balance as of March 31, 2012
$
25,150
Increase in goodwill related to acquisitions
-
Balance as of March 31, 2013
25,150
Increase in goodwill related to acquisitions
14,155
Decrease in goodwill related to disposal of
discontinued operations
(1,210)
Other
366
Balance as of March 31, 2014
$
38,461
March 31, 2014
March 31, 2013
Gross
Gross
Carrying
Accumulated
Net Carrying
Carrying
Accumulated
Net Carrying
Amount
Amortization
Amount
Amount
Amortization
Amount
Technology
$
8,242
$
(2,080)
$
6,162
$
8,242
$
(1,256)
$
6,986
Customer relationships
9,686
(1,710)
7,976
3,305
(1,054)
2,251
Trade names/domains
957
-
957
957
-
957
Total acquired identifiable
intangible assets
$
18,885
$
(3,790)
$
15,095
$
12,504
$
(2,310)
$
10,194
Amount
2015
$
2,261
2016
2,261
2017
2,253
2018
2,005
2019
1,759
Thereafter
3,599
Total
$
14,138