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Goodwill and Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2014
Goodwill by Segment and Changes in Carrying Amount of Goodwill

The following table presents goodwill by segment as of March 31, 2014 and December 31, 2013 and changes in the carrying amount of goodwill (in thousands):

 

 

Total

 

 

Premises

 

 

Credentials

 

 

 

Identity

 

 

All Other

 

Balance at December 31, 2012

$

24,664

 

 

$

21,891

 

 

$

522

 

 

 

$

1,172

 

 

$

1,079

 

Goodwill impairment during the period

 

(15,572

)

 

 

(14,108

)

 

 

(522

)

 

 

 

 

 

 

(942

)

Currency translation adjustment

 

(101

)

 

 

 

 

 

 

 

 

 

36

 

 

 

(137

)

Balance at December 31, 2013

 

8,991

 

 

 

7,783

 

 

 

 

 

 

 

1,208

 

 

 

 

Currency translation adjustment

 

3

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

Balance at March 31, 2014

$

8,994

 

 

$

7,783

 

 

$

 

 

 

$

1,211

 

 

$

 

 

Summary of Gross Carrying Amount and Accumulated Amortization for Intangible Assets Resulting from Acquisitions

The following table summarizes the gross carrying amount and accumulated amortization for the intangible assets resulting from acquisitions (in thousands):  

 

 

Existing

 

 

Customer

 

 

Trade

 

 

 

 

 

 

Technology

 

 

Relationship

 

 

Name

 

 

Total

 

 

11.75

 

 

4 – 11.75

 

 

1

 

 

 

 

 

Amortization period

years

 

 

years

 

 

year

 

 

Total

 

Cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2012

$

4,600

 

 

$

10,732

 

 

$

570

 

 

$

15,902

 

Currency translation adjustment

 

 

 

 

15

 

 

 

 

 

 

15

 

Balance at December 31, 2013

$

4,600

 

 

$

10,747

 

 

$

570

 

 

$

15,917

 

Balance at March 31, 2014

$

4,600

 

 

$

10,747

 

 

$

570

 

 

$

15,917

 

Accumulated Amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2012

$

(1,125

)

 

$

(2,816

)

 

$

(285

)

 

$

(4,226

)

Amortization expense

 

(341

)

 

 

(865

)

 

 

(285

)

 

 

(1,491

)

Currency translation adjustment

 

 

 

 

(16

)

 

 

 

 

 

(16

)

Balance at December 31, 2013

$

(1,466

)

 

$

(3,697

)

 

$

(570

)

 

$

(5,733

)

Amortization expense

 

(112

)

 

 

(251

)

 

 

 

 

 

(363)

 

Balance at March 31, 2014

$

(1,578

)

 

$

(3,948

)

 

$

(570

)

 

$

(6,096

)

Intangible Assets, net at December 31, 2013

$

3,134

 

 

$

7,050

 

 

$

 

 

$

10,184

 

Intangible Assets, net at March 31, 2014

$

3,022

 

 

$

6,799

 

 

$

 

 

$

9,821

 

 

Amortization Expense Included in Condensed Consolidated Statements of Operations

The following table illustrates the amortization expense included in the condensed consolidated statements of operations for the quarters ended March 31, 2014 and 2013 (in thousand):

 

 

Three Months Ended

 

 

March 31,

 

 

2014

 

 

2013

 

Cost of revenue

$

112

 

 

$

96

 

Selling and marketing

 

251

 

 

 

339

 

Total

$

363

 

 

$

435

 

 

Estimated Future Amortization Expense of Purchased Intangible Assets with Definite Lives

The estimated future amortization expense of purchased intangible assets with definite lives for the next five years is as follows (in thousands):

 

March 31, 2014:

 

 

 

 

2014 (remaining nine months)

 

$

1,091

 

2015

 

 

1,455

 

2016

 

 

1,455

 

2017

 

 

1,455

 

2018

 

 

1,455

 

Thereafter

 

 

2,910

 

Total

 

$

9,821