Shutterfly 2013 Annual Report Download - page 82

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Note 3 — Balance Sheet Components
Intellectual Property Prepaid Royalties
Total amortization for these license agreements in 2013 and 2012 were $1.5 million and $0.9 million,
respectively. As of December 31, 2013, the Company had a balance of $9.5 million in unamortized prepaid
royalties. Amortization of these licenses is estimated as follows (in thousands):
Year Ending:
2014 .............................................................. $ 1,527
2015 .............................................................. 964
2016 .............................................................. 854
2017 .............................................................. 799
2018 .............................................................. 799
Thereafter .......................................................... 4,537
$ 9,480
Prepaid Expenses and Other Current Assets
December 31,
2013 2012
(in thousands)
Prepaid service contracts – current portion ......................... $ 5,044 $ 5,771
Deferred costs ............................................. 4,915 3,278
Other prepaid expenses and current assets ......................... 11,301 6,219
$ 21,260 $ 15,268
Other Assets
December 31,
2013 2012
(in thousands)
Other assets ............................................... $ 15,412 $ 4,310
Other assets includes the long-term portion of intellectual property prepaid royalties, the long-term
portion of issuance costs related to the Company’s 0.25% Convertible Notes, the long-term portion of
prepaid service contracts, and deposits on long-term leases and other contracts. The increase during the
year ended December 31, 2013 was primarily due to the addition of intellectual property prepaid royalties
and issuance costs related to the Company’s 0.25% Convertible Notes.
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