Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2014

(4) Goodwill and Intangible Assets

The Company’s goodwill balance is attributable to its Bigstockphoto, Inc. (“Bigstock”) and WebDAM reporting units and is tested for impairment at least annually on October 1 or upon a triggering event. The following table summarizes the changes in the Company’s goodwill balance through September 30, 2014:

	Bigstock		WebDAM		Consolidated
Balance as of December 31, 2013	$	1,423	$	—	$	1,423
Goodwill related to acquisition	—		8,763		8,763
Balance as of September 30, 2014	$	1,423	$	8,763	$	10,186

Intangible assets consist of the following as of September 30, 2014 and December 31, 2013:

	As of September 30, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Life (Years)

Amortizing intangible assets:
Customer relationship	$	3,400	$	(821	)	$	2,579	6
Trade name	900		(198		)	702		9
Developed technology	600		(47		)	553		7
Contributor content	450		(151		)	299		15
Patents	193		(27		)	166		17
Domain name	97		(17		)	80		14
Total(1)	$	5,640	$	(1,261	)	$	4,379

(1): During the three months ended September 30, 2014, the Company acquired the non-exclusive licensing rights to distribute digital content in perpetuity in the amount of $331. The Company has not yet placed the digital content into service and therefore is excluded from the table.

	As of December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Life (Years)
Amortizing intangible assets:
Customer relationship	$	600	$	(600	)	$	—	4
Trade name	400		(119		)	281		14
Contributor content	450		(127		)	323		15
Patents	193		(21		)	172		17
Domain name	86		(9		)	77		15
Total	$	1,729	$	(876	)	$	853

Amortization expense was $167 and $57 for the three months ended September 30, 2014 and 2013, respectively, and $384 and $169 for the nine months ended September 30, 2014 and 2013, respectively. The Company also determined that there was no indication of impairment for the intangible assets for all periods presented. Estimated amortization expense for the next five years is: $166 for the remaining three months of 2014, $665 in 2015, $665 in 2016, $665 in 2017, $634 in 2018 and $1,584 thereafter.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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