Enom 2011 Annual Report Download - page 98

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December 31, 2010
Gross
carrying
amount
Accumulated
amortization Net Weighted
average
useful life
Owned website names $ 46,094 $ (36,018) $ 10,076 3.7
Customer relationships 24,355 (17,653) 6,702 5.5
Media content 96,412 (34,205) 62,207 5.1
Technology 34,259 (19,518) 14,741 6.1
Non-compete agreements 14,429 (14,306) 123 3.3
Trade names 10,979 (3,615) 7,364 14.8
Content publisher relationships 2,092 (1,191) 901 5.0
$ 228,620 $ (126,506) $ 102,114 5.3
December 31, 2011
Gross
carrying
amount
Accumulated
amortization Net Weighted
average
useful life
Owned website names $ 43,343 $ (35,674) $ 7,669 3.8
Customer relationships 27,325 (20,257) 7,068 5.8
Media content 130,981 (56,847) 74,134 5.1
Technology 38,694 (24,055) 14,639 5.8
Non-compete agreements 14,806 (14,513) 293 3.3
Trade names 11,294 (4,652) 6,642 14.5
Content publisher relationships 2,092 (1,233) 859 5.0
$ 268,535 $ (157,231) $ 111,304 5.3
Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives.
Amortization expense by classification for years ended December, 2009, 2010 and 2011 is shown below:
Year ended December 31,
2009 2010 2011
Service costs $ 18,607 $ 22,759 $ 38,715
Sales and marketing 3,486 3,303 3,069
Product development 5,541 5,257 4,343
General and administrative 4,518 2,431 1,047
Total amortization $ 32,152 $ 33,750 $ 47,174
Service costs amortization for 2011 includes an accelerated amortization charge of $5,898 as a result of the Company removing certain content
assets from service.
Based upon the current amount of intangible assets subject to amortization, the estimated amortization expense for the next five years as of
December 31, 2011 is as follows: $36,247 in 2012, $28,914 in 2013, $23,701 in 2014, $14,196 in 2015, $4,127 in 2016 and $4,119 thereafter including
amortization expense related to media content of $22,039 in 2012, $19,805 in 2013, $17,329 in 2014, $11,729 in 2015, $3,045 in 2016 and $187 thereafter.
5. Goodwill
The following table presents the changes in the Company’s goodwill balance:
F-19