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Note 6 - Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 2018
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. Goodwill and Other Intangible Assets: Goodwill Goodwill represents the excess of the purchase price over the fair value of tangible and identifiable intangible assets acquired and liabilities assumed in our acquisitions. The Company's Goodwill balance is $90.1 million as of September 30, 2018 ( December 31, 2017 – $90.1 million). The Company's goodwill relates 98% ( $87.9 million) to its Domain Services operating segment and 2% ( $2.2 million) to its Network Access Services operating segment. Goodwill is not amortized, but is subject to an annual impairment test, or more frequently if impairment indicators are present. Other Intangible Assets: Intangible assets consist of acquired brand, technology, customer relationships, surname domain names, direct navigation domain names and network rights. The Company considers its intangible assets consisting of surname domain names and direct navigation domain names as indefinite life intangible assets. The Company has the exclusive right to these domain names as long as the annual renewal fees are paid to the applicable registry. Renewals occur routinely and at a nominal cost. The indefinite life intangible assets are not amortized but are subject to impairment assessments performed throughout the year. As part of the normal renewal evaluation process during the periods ended September 30, 2018 and September 30, 2017, the Company assessed that certain domain names that were originally acquired in the June 2006 acquisition of Mailbank.com Inc. that were up for renewal, should be renewed. Intangible assets, comprising brand, technology, customer relationships and network rights are being amortized on a straight-line basis over periods of four to fifteen years. A summary of acquired intangible assets for the three months ended September 30, 2018 is as follows (Dollar amounts in thousands of U.S. dollars) :
|  | Surname domain names |  |  | Direct navigation domain names |  |  | Brand |  |  | Customer relationships |  |  | Technology |  |  | Network rights |  |  | Total |
Amortization period |  | indefinite life |  |  | indefinite life |  |  | 7 years |  |  | 4 - 7 years |  |  | 2 years |  |  | 15 years |  |  |  |  |
Balances June 30, 2018 |  | $ | 11,201 |  |  | $ | 1,495 |  |  | $ | 9,892 |  |  | $ | 29,429 |  |  | $ | 1,138 |  |  | $ | 538 |  |  | $ | 53,693 |
Acquisition of customer relationships |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 113 |  |  |  |  |  |  |  |  |  |  |  | 113 |
Additions to/(disposals from) domain portfolio, net |  |  | (2 | ) |  |  | (3 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (5 | )
Amortization expense |  |  | - |  |  |  | - |  |  |  | (446 | ) |  |  | (1,351 | ) |  |  | (488 | ) |  |  | (11 | ) |  |  | (2,296 | )
Balances September 30, 2018 |  | $ | 11,199 |  |  | $ | 1,492 |  |  | $ | 9,446 |  |  | $ | 28,191 |  |  | $ | 650 |  |  | $ | 527 |  |  | $ | 51,505 |
A summary of acquired intangible assets for the nine months ended September 30, 2018 is as follows (Dollar amounts in thousands of U.S. dollars) :
|  | Surname domain names |  |  | Direct navigation domain names |  |  | Brand |  |  | Customer relationships |  |  | Technology |  |  | Network rights |  |  | Total |
Amortization period |  | indefinite life |  |  | indefinite life |  |  | 7 years |  |  | 4 - 7 years |  |  | 2 years |  |  | 15 years |  |  |  |  |
Balances December 31, 2017 |  | $ | 11,210 |  |  | $ | 1,551 |  |  | $ | 10,793 |  |  | $ | 32,186 |  |  | $ | 2,113 |  |  | $ | 561 |  |  | $ | 58,414 |
Acquisition of customer relationships |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 114 |  |  |  | - |  |  |  | - |  |  |  | 114 |
Additions to/(disposals from) domain portfolio, net |  |  | (11 | ) |  |  | (59 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (70 | )
Amortization expense |  |  | - |  |  |  | - |  |  |  | (1,347 | ) |  |  | (4,109 | ) |  |  | (1,463 | ) |  |  | (34 | ) |  |  | (6,953 | )
Balances September 30, 2018 |  | $ | 11,199 |  |  | $ | 1,492 |  |  | $ | 9,446 |  |  | $ | 28,191 |  |  | $ | 650 |  |  | $ | 527 |  |  | $ | 51,505 |
The following table shows the estimated amortization expense in future periods, assuming no further additions to acquired intangible assets are made (Dollar amounts in thousands of U.S. dollars) :
|  | Year ending |
|  | December 31, |
Remainder of 2018 |  | $ | 2,285 |
2019 |  |  | 7,349 |
2020 |  |  | 7,187 |
2021 |  |  | 7,187 |
2022 |  |  | 7,187 |
Thereafter |  |  | 7,619 |
Total |  | $ | 38,814 |
As of September 30, 2018, the accumulated amortization for the definite life intangible assets was $22.3 million.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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