Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

The Company’s goodwill and intangible assets are associated with the purchase of Virtek Communication (now KVH Industries Norway AS) in September 2010, Headland Media Limited (now known as the KVH Media Group) in May 2013, and Videotel in July 2014.

Intangible assets are subject to amortization. The following table summarizes other intangible assets as of December 31, 2014 and 2013, respectively:



	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
December 31, 2014
Subscriber relationships	$	19,919	$	2,165	$	17,754
Distribution rights	4,915		558		4,357
Internally developed software	2,529		569		1,960
Proprietary content	9,137		1,094		8,043
Intellectual property	2,284		1,403		881
Favorable lease	721		75		646
	$	39,505	$	5,864	$	33,641
December 31, 2013
Subscriber relationships	$	8,763	$	540	$	8,223
Distribution rights	5,183		212		4,971
Internally developed software	571		118		453
Proprietary content	195		61		134
Intellectual property	2,280		1,074		1,206
	$	16,992	$	2,005	$	14,987

The Company amortizes its intangible assets over the estimated useful lives of the respective assets as discussed above in our Summary of Significant Accounting Policies. Amortization expense related to intangible assets was $3,859, $1,179, and $394 for years ended December 31, 2014, 2013, and 2012, respectively.

Estimated future amortization expense for intangible assets recorded by the Company at December 31, 2014 is as follows:



Years ending December 31,	Amortization Expense
2015	$	5,554
2016	5,405
2017	5,242
2018	4,769
2019	3,562
Thereafter	9,109
Total amortization expense	$	33,641

Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired. The changes in the carrying amount of goodwill during the year ended December 31, 2014 is as follows:



	2014
Balance at January 1	$	18,281
Acquisition of Videotel	23,151
Foreign currency translation adjustment	(978		)
Balance at December 31	$	40,454

The changes in the carrying amount of intangible assets during the year ended December 31, 2014 is as follows:



	2014
Balance at January 1	$	14,987
Acquisition of Videotel	25,524
Amortization expense	(3,859		)
Foreign currency translation adjustment	$	(3,011	)
Balance at December 31	$	33,641

- 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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