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Note 11 - Costs to Obtain and Fulfill a Contract | 3 Months Ended
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Mar. 31, 2019
Notes to Financial Statements |
Capitalized Contract Costs [Text Block] | 11. Costs to obtain and fulfill a contract Deferred costs of fulfillment Deferred costs to fulfill contracts generally consist of domain registration costs which have been paid to a domain registry, and are capitalized as Prepaid domain name registry and ancillary services fees. These costs are deferred and amortized over the life of the domain which generally ranges from one to ten years. For the three months ended March 31, 2019, the Company capitalized $43.3 million and also amortized $41.5 million of contract costs, respectively. We also acquired $10.3 million of prepaid domain name registry and ancillary service fees in the Ascio acquisition, which took place on March 18, 2019. Amortization of contract fulfillment costs is primarily included in cost of revenue. The breakdown of the movement in the prepaid domain name registry and ancillary services fees balance for the three months ended March 31, 2019 is as follows (Dollar amounts in thousands of U.S. dollars).
|  | Three months ended March 31, 2019 |
Balance, beginning of period |  | $ | 106,527 |
Acquired in a business combination 1 |  |  | 10,318 |
Capitalization of costs |  |  | 43,260 |
Amortization of costs |  |  | (41,544 | )
Balance, end of period |  | $ | 118,561 |
1 The Company acquired Ascio on March 18, 2019. As part of the transition, the Company acquired active domain name contracts with a terms ranging from 1 - 10 years, for which fees to suppliers were paid in advance.

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