|
7. Intangible Assets and Goodwill
Intangible Assets
As of September 30, 2011 and December 31, 2010, our identifiable intangible assets subject to amortization consisted of the following:
|
|
|
As of |
|
|
|
|
September 30, 2011 |
|
December 31, 2010 |
|
|
|
|
Intangible |
|
Accumulated |
|
Intangible |
|
Accumulated |
|
|
|
|
Assets |
|
Amortization |
|
Assets |
|
Amortization |
|
|
|
|
(In thousands) |
|
|
Contract-based |
|
$ |
257,666 |
|
$ |
(132,507 |
) |
$ |
190,566 |
|
$ |
(108,361 |
) |
|
Customer relationships |
|
305,026 |
|
(54,369 |
) |
23,632 |
|
(23,605 |
) |
|
Technology-based (1) |
|
151,837 |
|
(44,844 |
) |
111,848 |
|
(35,086 |
) |
|
Favorable leases |
|
4,707 |
|
(379 |
) |
— |
|
— |
|
|
Trademark portfolio |
|
32,341 |
|
(853 |
) |
— |
|
— |
|
|
Total |
|
$ |
751,577 |
|
$ |
(232,952 |
) |
$ |
326,046 |
|
$ |
(167,052 |
) |
Amortization of these intangible assets is recorded on a straight line basis over an average finite useful life primarily ranging from approximately one to twenty years or in relation to the estimated discounted cash flows over the life of the intangible. Amortization was $46 million and $8 million during the three months ended September 30, 2011 and 2010, respectively. Amortization was $66 million and $25 million during the nine months ended September 30, 2011 and 2010, respectively.
Estimated future amortization of our identifiable intangible assets as of September 30, 2011 is as follows (in thousands):
|
For the Years Ended December 31, |
|
|
|
|
2011 (remaining three months) |
|
$ |
42,883 |
|
|
2012 |
|
92,593 |
|
|
2013 |
|
70,208 |
|
|
2014 |
|
78,554 |
|
|
2015 |
|
63,331 |
|
|
Thereafter (1) |
|
171,056 |
|
|
Total |
|
$ |
518,625 |
|
(1) On December 31, 2010, we acquired certain assets of Move Networks, Inc. which included in-process research and development (“R&D”). In-process R&D assets acquired in a business combination initially are considered indefinite-lived assets until either the completion or abandonment of the associated R&D efforts. Upon the successful completion of the development process, we will commence amortization of the balance over the estimated useful life of the project. For purposes of the amortization table, we included the entire in-process R&D balance of $26 million in the category labeled “Thereafter” until such time that the R&D efforts are finalized or abandoned.
Goodwill
The excess of our investments in consolidated subsidiaries over net tangible and identifiable intangible asset value at the time of the investment is recorded as goodwill and is not subject to amortization but is subject to impairment testing annually or whenever indicators of impairment arise. The goodwill associated with various acquisitions is detailed in the table below.
|
|
|
Goodwill |
|
|
|
|
(In thousands) |
|
|
Balance as of December 31, 2010 |
|
$ |
6,457 |
|
|
Troppus Acquisition |
|
10,363 |
|
|
Hughes Acquisition |
|
523,135 |
|
|
Balance as of September 30, 2011 |
|
$ |
539,955 |
| |