Groupon 2014 Annual Report Download - page 107

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GROUPON, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
103
For the year ended December 31, 2014, $11.7 million and $30.4 million of amortization expense for capitalized internally-developed
software is included within "Cost of revenue" and "Selling, general and administrative," respectively, on the consolidated statements
of operations. For the year ended December 31, 2013, $7.9 million and $17.3 million of amortization expense for capitalized
internally-developed software is included within "Cost of revenue" and "Selling, general and administrative," respectively, on the
consolidated statements of operations. For the year ended December 31, 2012, amortization expense for capitalized internally-
developed software is primarily included within "Selling, general and administrative."
5. GOODWILL AND OTHER INTANGIBLE ASSETS
The following table summarizes the Company's goodwill activity by segment for the years ended December 31, 2014
and 2013 (in thousands):
North America International EMEA Rest of World Consolidated
Balance as of December 31, 2012 ........ $ 79,276 $ 127,408 $ — $ — $ 206,684
Reallocation to new segments........... —(124,770) 105,347 19,423 —
Goodwill related to acquisitions ....... 4,893 — 4,611 — 9,504
Other adjustments(1) .......................... 1,288 (2,638) 5,711 278 4,639
Balance as of December 31, 2013 ........ $ 85,457 $ — $ 115,669 $ 19,701 $ 220,827
Goodwill related to acquisitions ....... 31,353 — — 218,692 250,045
Other adjustments(1) .......................... (92) — (13,490)(9,480)(23,062)
Balance as of December 31, 2014 ........ $ 116,718 $ — $ 102,179 $ 228,913 $ 447,810
(1) Represents the impact of changes in foreign exchange rates on goodwill.
The Company evaluates goodwill for impairment annually on October 1 or more frequently when an event occurs or
circumstances change that indicates the carrying value may not be recoverable. No goodwill impairments were recognized for the
years ended December 31, 2014, 2013 and 2012.
The following tables summarize the Company's intangible assets (in thousands):
December 31, 2014
Asset Category
Gross Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Subscriber relationships................................. $ 103,858 $ 48,754 $ 55,104
Merchant relationships................................... 39,448 18,677 20,771
Trade names................................................... 29,190 10,666 18,524
Developed technology ................................... 25,903 21,989 3,914
Brand relationships ........................................ 7,664 1,486 6,178
Other intangible assets ................................... 17,045 10,979 6,066
Total ............................................................... $ 223,108 $ 112,551 $ 110,557
December 31, 2013
Asset Category
Gross Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Subscriber relationships................................. $ 45,541 $ 30,866 $ 14,675
Merchant relationships .................................. 9,186 7,991 1,195
Trade names................................................... 6,739 6,739 —
Developed technology ................................... 23,038 19,547 3,491
Other intangible assets................................... 16,776 7,694 9,082
Total............................................................... $ 101,280 $ 72,837 $ 28,443