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Intangible assets, net
12 Months Ended
Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible assets, net

8. Intangible assets, net

Intangible assets other than goodwill consist of the following:

 

(In thousands)

 

Amortization period

 

December 31, 2016

 

 

December 31, 2015

 

Gross amount:

 

 

 

 

 

 

 

 

 

 

Purchased IP and capitalized litigation costs

 

10 years

 

$

-

 

 

$

1,659

 

Software developed for internal use

 

3-10 years

 

 

11,438

 

 

 

2,571

 

Acquired proprietary technology

 

5 years

 

 

13,532

 

 

 

10,716

 

Customer relationships

 

7-10 years

 

 

34,986

 

 

 

30,875

 

Trade names

 

20 years

 

 

18,057

 

 

 

16,357

 

Domain names

 

20 years

 

 

191

 

 

 

191

 

Databases

 

5-10 years

 

 

31,292

 

 

 

25,052

 

Non-competition agreements

 

2-5 years

 

 

1,768

 

 

 

728

 

 

 

 

 

 

111,264

 

 

 

88,149

 

Accumulated amortization:

 

 

 

 

 

 

 

 

 

 

Purchased IP and capitalized litigation costs

 

 

 

 

-

 

 

 

(34

)

Software developed for internal use

 

 

 

 

(505

)

 

 

(50

)

Acquired proprietary technology

 

 

 

 

(2,660

)

 

 

(133

)

Customer relationships

 

 

 

 

(4,840

)

 

 

(272

)

Trade names

 

 

 

 

(916

)

 

 

(50

)

Domain names

 

 

 

 

(10

)

 

 

(1

)

Databases

 

 

 

 

(3,354

)

 

 

(155

)

Non-competition agreements

 

 

 

 

(448

)

 

 

(9

)

 

 

 

 

 

(12,733

)

 

 

(704

)

Net intangible assets:

 

 

 

 

 

 

 

 

 

 

Purchased IP and capitalized litigation costs

 

 

 

 

-

 

 

 

1,625

 

Software developed for internal use

 

 

 

 

10,933

 

 

 

2,521

 

Acquired proprietary technology

 

 

 

 

10,872

 

 

 

10,583

 

Customer relationships

 

 

 

 

30,146

 

 

 

30,603

 

Trade names

 

 

 

 

17,141

 

 

 

16,307

 

Domain names

 

 

 

 

181

 

 

 

190

 

Databases

 

 

 

 

27,938

 

 

 

24,897

 

Non-competition agreements

 

 

 

 

1,320

 

 

 

719

 

 

 

 

 

$

98,531

 

 

$

87,445

 

The amount associated with Purchased IP and capitalized litigation costs, included in the Information Services segment, is mainly related to the intellectual property purchased by the Company’s subsidiary, TBO, from Ole Poulsen (“Purchased IP”) pursuant to the Intellectual Property Purchase Agreement dated October 14, 2014 and related legal and other costs incurred and paid in defending the Company’s claims to the Purchased IP against TransUnion Risk and Alternative Data Solutions, Inc. (“TRADS”). In 2016, the Company wrote off the remaining balance of Purchased IP and capitalized litigation costs of $4,055, which is reflected in the operating expenses as write-off of intangible assets in the consolidated statements of operations for the year ended December 31, 2016, as a result of an unfavorable ruling in relation to the litigation. See Note 18, “Commitment and contingencies,” for additional information regarding the litigation involving the Purchased IP.

 

The gross amount associated with software developed for internal use mainly represents capitalized costs of internally developed software. The amounts relating to acquired proprietary technology, customer relationships, trade names, domain names, databases, and non-competition agreements all represent the fair values of intangible assets acquired as a result of the Fluent Acquisition and the Q Interactive Acquisition.

Amortization expenses of $12,084, $698 and $6 were included in depreciation and amortization expenses for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016, intangible assets of $4,576, included in the gross amounts of software developed for internal use, have not started amortization, as they have not yet been put into use.

The Company capitalized $11,318 and $3,428 during the years ended December 31, 2016 and 2015, with $8,867 and $2,230 related to internally developed software, and $2,451 and $1,198 related to purchased intellectual property litigation costs, respectively.

 

As of December 31, 2016, estimated amortization expenses related to the Company’s intangible assets for 2017 through 2022 and thereafter are as follows:

 

(In thousands)

 

 

 

 

Year

 

December 31, 2016

 

2017

 

$

13,860

 

2018

 

 

13,901

 

2019

 

 

13,592

 

2020

 

 

13,150

 

2021

 

 

9,942

 

2022 and thereafter

 

 

34,086

 

Total

 

$

98,531