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Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Patentsandothers $ 8,889 $ 8,729 $ 160
CustomerRelationship 54,500 2,773 51,727
Technology 33,100 1,598 31,502
Non-Compete 1,100 389 711
Trademark 700 239 461
TotalIntangibleassetsatDecember31,2015 $ 98,289 $ 13,728 $ 84,561
TABLE OF CONTENTS
STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
4. Goodwill and Intangible Assets
Goodwillrepresentstheexcessofthefairvalueofconsiderationgivenoverthefairvalueofthetangibleassets,identifiable
intangibleassetsandliabilitiesassumedinbusinesscombinations.
ThefollowingtablesummarizesgoodwillasofDecember31,2014and2015(inthousands):
2014
GoodwillbalanceatDecember31,2013 $ —
Acquisitions(seeNote3–“Acquisitions”) 66,893
GoodwillbalanceatDecember31,2014 $ 66,893
2015
GoodwillbalanceatDecember31,2014 $ 66,893
Acquisitions(seeNote3–“Acquisitions”) 130,914
GoodwillbalanceatDecember31,2015 $ 197,807
GoodwillisreviewedforimpairmentannuallyonOctober1stutilizingaqualitativeassessmentoratwo-stepprocess.Wehavean
optiontomakeaqualitativeassessmentofareportingunit'sgoodwillforimpairment.Ifwechoosetoperformaqualitativeassessment
anddeterminethefairvaluemorelikelythannotexceedsthecarryingvalue,nofurtherevaluationisnecessary.Forreportingunits
whereweperformthetwo-stepprocess,thefirststeprequiresustocomparethefairvalueofeachreportingunit,whichweprimarily
determineusinganincomeapproachbasedonthepresentvalueofdiscountedcashflows,totherespectivecarryingvalue,which
includesgoodwill.Ifthefairvalueofthereportingunitexceedsitscarryingvalue,thegoodwillisnotconsideredimpaired.Ifthe
carryingvalueishigherthanthefairvalue,thereisanindicationthatimpairmentmayexistandthesecondstepisrequired.Insteptwo,
theimpliedfairvalueofgoodwilliscalculatedastheexcessofthefairvalueofareportingunitoverthefairvaluesassignedtoits
assetsandliabilities.Iftheimpliedfairvalueofgoodwillislessthanthecarryingvalueofthereportingunit'sgoodwill,thedifference
isrecognizedasanimpairmentloss.
Wehaveamortizableandnon-amortizableintangibleassetsconsistingofpatents,trademarks,tradenames,lease-in-place
intangibleassets,developedtechnology,non-competeagreementsandcustomerrelationshipstotalingapproximately$109.7million
and$29.5millioningrosscarryingamountasofDecember31,2015and2014,respectively.Ourindefinite-livedintangibleassets
consistoftradeanddomainnametotalingapproximately$11.4millionand$490,000asofDecember31,2015and2014,respectively.
ThefollowingtablesummarizesouramortizableintangibleassetsasofDecember31,2015(inthousands):
F-20