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F-15 VONAGE ANNUAL REPORT 2013
Accrued expenses
December 31,
2013
December 31,
2012
Compensation and related taxes and temporary labor $ 20,276 $16,376
Marketing 23,277 10,889
Taxes and fees 18,207 9,747
Litigation and settlements 89 89
Telecommunications 7,942 9,135
Other accruals 6,063 4,412
Customer credits 1,719 2,056
Professional fees 2,490 2,200
Accrued interest 12 5
Inventory 769 572
Credit card fees 283 306
Accrued expenses $ 81,127 $55,787
Note 3. Intangible Assets
Intangible assets, net
December 31,
2013
December 31,
2012
Customer relationships $ 39,100 $—
Developed technology 35,200 —
Patents and patent licenses 18,264 18,164
Trademark 560 560
Trade names 500 —
Non-compete agreements 200 —
93,824 18,724
Less: accumulated amortization (16,974) (12,043)
Intangible assets, net $ 76,850 $6,681
Represents customer relationships, developed technology, trade names and non-compete agreements identified in the acquisition of a
business. In addition, includes patents and trademarks we have purchased and licensed, including in connection with the settlement of litigation.
The intangible assets are being amortized over periods which reflect the pattern in which economic benefits of the assets are expected
to be realized. The customer relationships and developed technology are being amortized on an accelerated basis over an estimated useful life
of ten years; patents and patent licenses are being amortized over their weighted average remaining lives; trademark is being amortized on a
straight-line basis over eight years; trade names are being amortized on a straight-line basis over five years; and the non-compete agreements are
being amortized on a straight-line basis over two years.
The total expected future annual amortization is as follows:
2014 $ 16,943
2015 14,185
2016 12,560
2017 9,480
2018 7,505
Thereafter $ 16,177
Total $ 76,850
Table of Contents
VONAGE HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)