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Table of Contents
obligation be presented as a deduction from the carrying amount of the debt obligation, with the associated amortization recognized as a component of
interest expense. The amendments are effective beginning January 1, 2016 on a retrospective basis, with early adoption permitted. The Company elected to
early adopt the amendments as of
December 31, 2015
. The adoption resulted in the reclassification of
$5.7 million
of debt issuance costs from Other long
-
term assets to Long
-
term debt, less current portion in the Consolidated Balance Sheets as of
December 31, 2014
.
In April 2014, the FASB issued guidance which modified the criteria for identifying a discontinued operation. The modification limited the
definition of a discontinued operation to the disposal of a component or group of components that is disposed of or is classified as held for sale and
represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results. Application of the modified criteria on
January 1, 2015 did not have a material effect on the Consolidated Financial Statements
.
Standards Pending Adoption
In April 2015, the FASB issued guidance to help entities evaluate whether fees paid in a cloud computing arrangement include a software license.
Pursuant to this guidance, when a cloud computing arrangement includes a software license, the customer accounts for the software license element of the
arrangement consistent with the acquisition of other software licenses. When a cloud computing arrangement does not include a software license, the
customer accounts for the arrangement as a service contract. The guidance is effective beginning January 1, 2016, with early adoption permitted. The
guidance can be applied prospectively to all arrangements entered into or materially modified after the effective date or on a retrospective basis. The
adoption of this guidance is not expected to have a material effect on the Company's Consolidated Financial Statements
.
In May 2014, the FASB issued an amended accounting standard for revenue recognition. The amendments provide enhancements to the quality
and consistency of how revenue is recognized while also improving comparability between the financial statements of companies applying U.S. GAAP and
International Financial Reporting Standards. The core principle of the amended standard is for an entity to recognize revenue to depict the transfer of
promised goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or
services. The amendments are effective for the Company in the first quarter of 2018 and may be applied using a full retrospective or modified retrospective
approach. Early adoption is permitted beginning in the first quarter of 2017. The Company is currently evaluating the effect the amendments and transition
alternatives will have on its Consolidated Financial Statements
.
(2) Acquisitions
2014 Acquisitions
Fanhattan Acquisition
On October 31, 2014, the Company acquired Fanhattan, Inc. ("Fanhattan"), and its cloud
-
based Fan TV branded products, for
$12.0 million
in cash.
The purchase price allocation for Fanhattan was as follows (in thousands, except useful lives):
The Fanhattan goodwill is not expected to be deductible for tax purposes.
F
-
14
Weighted-Average
Useful Life
Amount
Cash and cash equivalents
$
235
Prepaid and other assets
206
Property and equipment
297
Intangible assets
Developed technology
3.0 years
$
3,300
Non
-
compete agreements
2.0 years
1,800
Total intangible assets
5,100
Goodwill
6,407
Accounts payable and other liabilities
(245
)
Total purchase price
$
12,000