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Intangible assets, net
3 Months Ended
Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible assets, net

4. Intangible assets, net

Intangible assets other than goodwill consist of the following:

 

(In thousands)

 

Amortization period

 

March 31, 2018

 

 

December 31, 2017

 

Gross amount:

 

 

 

 

 

 

 

 

 

 

Software developed for internal use

 

3 years

 

$

3,308

 

 

$

2,972

 

Acquired proprietary technology

 

5 years

 

 

11,382

 

 

 

11,382

 

Customer relationships

 

7-10 years

 

 

34,986

 

 

 

34,986

 

Trade names

 

20 years

 

 

16,357

 

 

 

16,357

 

Domain names

 

20 years

 

 

191

 

 

 

191

 

Databases

 

5-10 years

 

 

31,292

 

 

 

31,292

 

Non-competition agreements

 

2-5 years

 

 

1,768

 

 

 

1,768

 

Total gross amount

 

 

 

 

99,284

 

 

 

98,948

 

Accumulated amortization:

 

 

 

 

 

 

 

 

 

 

Software developed for internal use

 

 

 

 

(655

)

 

 

(490

)

Acquired proprietary technology

 

 

 

 

(5,263

)

 

 

(4,693

)

Customer relationships

 

 

 

 

(10,825

)

 

 

(9,628

)

Trade names

 

 

 

 

(1,891

)

 

 

(1,686

)

Domain names

 

 

 

 

(22

)

 

 

(20

)

Databases

 

 

 

 

(7,866

)

 

 

(6,964

)

Non-competition agreements

 

 

 

 

(1,280

)

 

 

(1,113

)

Total accumulated amortization

 

 

 

 

(27,802

)

 

 

(24,594

)

Net intangible assets:

 

 

 

 

 

 

 

 

 

 

Software developed for internal use

 

 

 

 

2,653

 

 

 

2,482

 

Acquired proprietary technology

 

 

 

 

6,119

 

 

 

6,689

 

Customer relationships

 

 

 

 

24,161

 

 

 

25,358

 

Trade names

 

 

 

 

14,466

 

 

 

14,671

 

Domain names

 

 

 

 

169

 

 

 

171

 

Databases

 

 

 

 

23,426

 

 

 

24,328

 

Non-competition agreements

 

 

 

 

488

 

 

 

655

 

Total net intangible assets

 

 

 

$

71,482

 

 

$

74,354

 

 

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 mainly represent the fair values of intangible assets acquired as a result of the acquisition of Fluent, LLC (“Fluent LLC”) effective on December 8, 2015 (the “Fluent LLC Acquisition”) and the acquisition of Q Interactive, LLC (“Q Interactive”) effective on June 8, 2016 (the “Q Interactive Acquisition”).

 

On January 18, 2017, the Company’s management and Board of Directors approved a plan to merge and fully integrate Q Interactive’s business into Fluent LLC (the “Q Interactive Integration”). As a result, 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 three months ended March 31, 2017.  

 

Amortization expenses of $3,208 and $3,111 for the three months ended March 31, 2018 and 2017, respectively, were included in depreciation and amortization expenses. As of March 31, 2018, intangible assets with the carrying amount of $1,317, included in the gross amounts of software developed for internal use, have not started amortization as they are not ready for their intended use.

 

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

 

(In thousands)

 

 

 

 

Year

 

March 31, 2018

 

Remainder of 2018

 

$

9,561

 

2019

 

 

12,751

 

2020

 

 

12,107

 

2021

 

 

8,892

 

2022

 

 

7,999

 

2023 and thereafter

 

 

20,172

 

Total

 

$

71,482