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The intangible balance as of December 31, 2012 has been retrospectively adjusted to reflect a decrease in goodwill and a corresponding
increase in intangible assets of $0.7 million related to the acquisition of Name.com in the fourth quarter 2012, as detailed in Note 5 - Goodwill.
Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives.
Amortization expense by classification is shown below (in thousands):
Service costs for the years ended December 31, 2013, 2012 and 2011 includes an accelerated amortization charge of $3.1 million, $2.1
million and $5.9 million, respectively, as a result of the 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, 2013 is as follows (in thousands):
5. Goodwill
The following table presents the changes in our goodwill balance (in thousands):
The increase of goodwill in 2013 is attributable to the acquisition of Creativebug in March 2013, and Society6 in June 2013 as detailed in
Note 15
- Business Acquisitions.
The increase of goodwill in 2012 is attributable to the acquisition of Name.com as detailed in Note 15 - Business Acquisitions.
The goodwill balance as of December 31, 2012 has been retrospectively adjusted to reflect a decrease in goodwill and a corresponding
increase in intangible assets of $0.7 million related to the acquisition of Name.com in the fourth quarter 2012. The adjustment was a result of
updated assumptions in the valuation of the intangible assets.
F-19
Year ended December 31,
2013
2012
2011
Service costs
$
34,310
$
32,792
$
38,715
Sales and marketing
4,252
2,635
3,069
Product development
4,903
4,272
4,343
General and administrative
944
977
1,047
Total amortization
$
44,409
$
40,676
$
47,174
Estimated
Amortization
Year ending December 31,
2014
$
35,730
2015
$
24,463
2016
$
12,505
2017
$
6,056
2018
$
2,787
Thereafter
$
7,225
Balance at December 31, 2011
$
256,060
Goodwill arising from acquisitions
10,312
Other
(23
)
Balance at December 31, 2012
266,349
Goodwill arising from acquisitions
81,135
Working capital adjustment
(102
)
Balance at December 31, 2013
$
347,382