Groupon 2012 Annual Report Download - page 90

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GROUPON, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The Company performed impairment testing for all reporting units as of October 1, 2012. Liabilities
exceeded assets for the EMEA and LATAM reporting units at the impairment test date. Due to the significant
decline in the Company’s overall market capitalization, the challenging economic conditions in Europe
(applicable to the Company’s EMEA reporting unit), and other qualitative factors, the Company determined that
the second step should be performed in connection with the October 1, 2012 goodwill impairment tests for the
EMEA and LATAM reporting units. No goodwill impairment was recognized for any of the Company’s
reporting units in connection with the October 1, 2012 annual test.
The following tables summarize the Company’s other intangible assets (in thousands):
As of December 31, 2012
Asset Category
Gross Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Weighted-Average
Remaining Useful
Life (in years)
Subscriber relationships .......... $42,075 $21,356 $20,719 2.5
Merchant relationships ........... 8,187 6,873 1,314 1.0
Trade names ................... 6,490 5,900 590 2.0
Developed technology ........... 20,000 10,994 9,006 1.2
Other intangible assets ........... 15,601 4,633 10,968 3.5
Total ......................... $92,353 $49,756 $42,597 2.4
As of December 31, 2011
Asset Category
Gross Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Weighted-Average
Remaining Useful
Life (in years)
Subscriber relationships .......... $41,272 $12,882 $28,390 3.5
Merchant relationships ........... 6,600 6,600 — 0.0
Trade names ................... 5,801 5,801 — 0.0
Developed technology ........... 5,583 2,151 3,432 1.5
Other intangible assets ........... 15,420 1,575 13,845 4.7
Total ......................... $74,676 $29,009 $45,667 3.7
Amortization of intangible assets is computed using the straight-line method over their estimated useful
lives, which range from one to five years. Amortization expense for these intangible assets was $19.9 million,
$19.3 million and $11.0 million, for the years ended 2012, 2011 and 2010, respectively. As of December 31,
2012, the Company’s estimated future amortization expense of these intangible assets was as follows (in
thousands):
Year Ended December 31,
2013 ......................................... $20,384
2014 ......................................... 13,451
2015 ......................................... 7,062
2016 ......................................... 1,689
Thereafter ......................................... 11
$42,597
84