Enom 2012 Annual Report Download - page 103

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F-20
4. Intangible Assets
Intangible assets consist of the following:
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
December 31, 2012
Gross
carrying
amount Accumulated
amortization Net
Weighted
average
useful life
Owned website names $ 42,840 $ (36,489) $ 6,351 3.7
Customer relationships 32,109 (23,151) 8,958 5.5
Media content 136,495 (78,223) 58,272 5.1
Technology 38,768 (28,556) 10,212 6.0
Non-compete agreements 14,986 (14,685) 301 3.3
Trade names 11,999 (5,654) 6,345 13.7
Content publisher relationships 2,092 (1,470) 622 5.0
$ 279,289 $ (188,228) $ 91,061 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 31, 2010, 2011 and 2012 is shown below:
Year ended December 31,
2010 2011 2012
Service costs $ 22,759 $ 38,715 $ 32,792
Sales and marketing 3,303 3,069 2,635
Product development 5,257 4,343 4,272
General and administrative 2,431 1,047 977
Total amortization $ 33,750 $ 47,174 $ 40,676
Service costs amortization for 2011 and 2012 includes an accelerated amortization charge of $5,898 and $2,055,
respectively, 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, 2012 is as follows: $33,191 in 2013, $27,291 in 2014, $17,465 in 2015, $7,060 in 2016,
$1,806 in 2017 and $893 thereafter including amortization expense related to media content of $23,219 in 2013, $20,469 in
2014, $14,238 in 2015, $5,195 in 2016, $1,320 in 2017 and $422 thereafter.