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Intangible assets, net
12 Months Ended
Dec. 31, 2017
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, 2017

 

December 31, 2016

 

Gross amount:

 

 

 

 

 

 

 

 

 

Software developed for internal use

 

3-10 years

 

 

19,614

 

 

11,438

 

Acquired proprietary technology

 

5 years

 

 

11,382

 

 

13,532

 

Customer relationships

 

7-10 years

 

 

34,986

 

 

34,986

 

Trade names

 

20 years

 

 

16,357

 

 

18,057

 

Domain names

 

20 years

 

 

191

 

 

191

 

Databases

 

5-10 years

 

 

31,292

 

 

31,292

 

Non-competition agreements

 

2-5 years

 

 

1,768

 

 

1,768

 

 

 

 

 

 

115,590

 

 

111,264

 

Accumulated amortization:

 

 

 

 

 

 

 

 

 

Software developed for internal use

 

 

 

 

(1,779

)

 

(505

)

Acquired proprietary technology

 

 

 

 

(4,693

)

 

(2,660

)

Customer relationships

 

 

 

 

(9,628

)

 

(4,840

)

Trade names

 

 

 

 

(1,686

)

 

(916

)

Domain names

 

 

 

 

(20

)

 

(10

)

Databases

 

 

 

 

(6,964

)

 

(3,354

)

Non-competition agreements

 

 

 

 

(1,113

)

 

(448

)

 

 

 

 

 

(25,883

)

 

(12,733

)

Net intangible assets:

 

 

 

 

 

 

 

 

 

Software developed for internal use

 

 

 

 

17,835

 

 

10,933

 

Acquired proprietary technology

 

 

 

 

6,689

 

 

10,872

 

Customer relationships

 

 

 

 

25,358

 

 

30,146

 

Trade names

 

 

 

 

14,671

 

 

17,141

 

Domain names

 

 

 

 

171

 

 

181

 

Databases

 

 

 

 

24,328

 

 

27,938

 

Non-competition agreements

 

 

 

 

655

 

 

1,320

 

 

 

 

 

$

89,707

 

$

98,531

 

The Company recorded 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 intangible assets as Purchased IP and capitalized litigation costs. In 2016, the Company wrote off the remaining balance of Purchased IP and capitalized litigation costs of $4,055, which is reflected in costs and expenses as write-off of long-lived 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.

As a result of the Q Interactive Integration approved on January 18, 2017, the remaining balance of long-lived assets of $3,626, relating primarily to the acquired proprietary technology and trade names acquired in the Q Interactive Acquisition, was written off to costs and expenses as a write-off of long-lived assets during the first quarter of 2017.  

 

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 $13,440, $12,084 and $698 were included in depreciation and amortization expenses for the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017, intangible assets of $3,869, included in the gross amounts of software developed for internal use, have not started amortization, as they are not ready for their intended use.

The Company capitalized $8,176 and $11,318 during the years ended December 31, 2017 and 2016, with $8,176 and $8,867 related to internally developed software, and $0 and $2,451 related to purchased intellectual property litigation costs, respectively.

 

As of December 31, 2017, estimated amortization expenses related to the Company’s intangible assets for 2018 through 2023 and thereafter are as follows:

 

(In thousands)

 

 

 

 

Year

 

December 31, 2017

 

2018

 

$

14,236

 

2019

 

 

14,307

 

2020

 

 

13,664

 

2021

 

 

10,500

 

2022

 

 

9,661

 

2023 and thereafter

 

 

27,339

 

Total

 

$

89,707