GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

As a result of the Company's sale of its Owned & Operated Websites businesses as described in Note 1, the Company's reporting units now consist of the Affiliate Marketing, Enterprise (formerly named Dotomi) and Media operating segments as of September 30, 2014. The changes in the carrying amount of goodwill, by reporting unit, for the nine-month period ended September 30, 2014, were as follows (in thousands):



	Affiliate Marketing			Enterprise		Media			Total
Balance at December 31, 2013	$	30,657		206,861		$	151,404		$	388,922
Foreign currency translation adjustments	(60		)	—		(27		)	(87		)
Acquisition	—			—		13,419			13,419
Balance at September 30, 2014	$	30,597		$	206,861	$	164,796		$	402,254

Goodwill, accumulated impairment losses and the net carrying amount of goodwill, by reporting unit, as of September 30, 2014, and December 31, 2013, were as follows (in thousands):



	Affiliate Marketing		Enterprise		Media			Total
September 30, 2014
Goodwill	$	30,597	$	206,861	$	276,796		$	514,254
Accumulated impairment losses	—		—		(112,000		)	(112,000		)
Goodwill, net	$	30,597	$	206,861	$	164,796		$	402,254

December 31, 2013
Goodwill	$	30,657	$	206,861	$	263,404		$	500,922
Accumulated impairment losses	—		—		(112,000		)	(112,000		)
Goodwill, net	$	30,657	$	206,861	$	151,404		$	388,922

The gross balance, accumulated amortization and net carrying amount of the Company’s intangible assets as of September 30, 2014, and December 31, 2013, were as follows (in thousands):



	Gross Balance		Accumulated Amortization			Net Carrying Amount
September 30, 2014
Customer, affiliate and advertiser relationships	$	96,970	$	(71,221	)	$	25,749
Trademarks, trade names and domain names	7,847		(7,578		)	269
Developed technologies	39,870		(26,862		)	13,008
Non-competition agreements	840		$	(280	)	560
Total intangible assets	$	145,527	$	(105,941	)	$	39,586

December 31, 2013
Customer, affiliate and advertiser relationships	$	95,810	$	(60,799	)	$	35,011
Trademarks, trade names and domain names	11,873		(10,555		)	1,318
Developed technologies	31,770		(19,598		)	12,172
Total intangible assets	$	139,453	$	(90,952	)	$	48,501

The following table summarizes, by consolidated statement of comprehensive income line item, the impact of amortization expense recognized for the three- and nine-month periods ended September 30, 2014 and 2013 (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Amortization of acquired developed technologies included in consolidated cost of revenue	$	2,478	$	1,986	$	7,265	$	5,957
Amortization of acquired intangible assets included in consolidated operating expenses	3,606		3,550		11,750		10,650
Total	$	6,084	$	5,536	$	19,015	$	16,607

Estimated intangible asset amortization expense for the remainder of 2014, the succeeding four years and thereafter is as follows (in thousands):



	Amortization included in:
	Cost of revenue		Operating expenses		Total
Three months ending December 31, 2014	$	2,478	$	3,606	$	6,084
2015	6,311		14,425		20,736
2016	2,025		8,378		10,403
2017	2,025		44		2,069
2018	169		44		213
Thereafter	—		81		81
Total	$	13,008	$	26,578	$	39,586

- 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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