Overstock.com 2015 Annual Report Download - page 48

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fair value of the reporting unit is allocated to the other assets and liabilities within the reporting unit based on estimated fair value. The excess of the fair
value of a reporting unit over the amount allocated to its other assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized
when the carrying amount of goodwill exceeds its implied fair value.
In accordance with this guidance, we test for impairment of goodwill in the fourth quarter or when we deem that a triggering event has occurred.
Goodwill totaled $15.4 million and $2.8 million at December 31, 2015 and 2014. There were no impairments to goodwill recorded during the years ended
December 31, 2015, 2014 and 2013.

We capitalize and amortize intangible assets other than goodwill over their estimated useful lives unless such lives are indefinite. Intangible assets
other than goodwill acquired separately from third-parties are capitalized at cost while such assets acquired as part of a business combination are capitalized
at their acquisition-date fair value. Intangible assets other than goodwill are amortized using the straight line method of amortization over their useful lives,
with the exception of certain intangibles (such as acquired technology, customer relationships, and trade names) which are amortized using an accelerated
method of amortization based on cash flows. These assets are reviewed for impairment whenever events or changes in circumstances indicate that their
carrying amount may not be recoverable as described below under .
During the year ended December 31, 2015, we acquired $15.8 million of intangible assets other than goodwill related to an asset acquisition.
Aggregate amortization expense for intangible assets other than goodwill was $1.6 million for the year ended December 31, 2015. Amortization expense for
intangible assets other than goodwill was not significant for the years ended December 31, 2014 and 2013.
Intangible assets consist of the following (in thousands):



Acquired intangible assets $ 15,776
$ —
Intangible assets, other 1,355
1,130
17,131
1,130
Less: accumulated amortization of intangible assets (2,475)
(895)
Total intangible assets, net $ 14,656
$ 235

We review property and equipment and other long-lived assets for impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset group may not be recoverable. Recoverability is measured by comparison of the assets’ carrying amount to future undiscounted
net cash flows the asset group is expected to generate. Cash flow forecasts are based on trends of historical performance and management’s estimate of future
performance, giving consideration to existing and anticipated competitive and economic conditions. If such asset group is considered to be impaired, the
impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair values. There were no impairments to
long-lived assets recorded during the years ended December 31, 2015, 2014 and 2013.

In the normal course of business, we are involved in legal proceedings and other potential loss contingencies. We accrue a liability for such matters
when it is probable that a loss has been incurred and the amount can be reasonably estimated. When only a range of probable loss can be estimated, the most
probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in
the range is accrued. We expense legal fees as incurred (see Item 15 of Part IV, "Financial Statements"—Note 12. Commitments and Contingencies).

In May 2014, the FASB issued ASU No. 2014-09, , which requires an entity to recognize the amount of
revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition
guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB issued ASU No. 2015-14, 
, which
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