Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table summarizes the activity related to Actua’s goodwill:



(in thousands)	Gross carrying amount		Accumulated impairment losses			Net carrying amount
Goodwill as of December 31, 2014	$	260,115	$	—		$	260,115
Decrease in goodwill due to FolioDynamix impairment charge	—		(39,656		)	(39,656		)
Goodwill as of December 31, 2015	$	260,115	$	(39,656	)	$	220,459
Acquisitions ⁽¹⁾	11,328		—			11,328
Goodwill as of December 31, 2016	$	271,443	$	(39,656	)	$	231,787

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⁽¹⁾	Refer to Note 4, "Consolidated Businesses", for details of acquisitions.

As of December 31, 2016 and 2015, all of Actua’s goodwill was allocated to its vertical cloud segment.

Impairment

Actua completed its annual impairment testing in the fourth quarter of each of 2016, 2015 and 2014. During the fourth quarter of 2015, Actua reviewed the goodwill balance for impairment in accordance with its accounting policy and identified factors, including the market value of Actua's common stock, indicating that the fair value of Actua’s goodwill could have fallen below its book value. As of December 31 2015, Actua determined that the goodwill associated with the FolioDynamix reporting unit was partially impaired and recognized an impairment charge of $39.7 million, recorded within the "Impairment related and other" line of the Consolidated Statements of Operations and Comprehensive Income (Loss). Refer to Note 8, "Fair Value Measurements," for a further discussion of the fair value measurement relating to the FolioDynamix reporting unit impairment charge.

The completion of Actua's 2016 and 2014 year-end impairment testing resulted in no impairments related to any of Actua's consolidated businesses; the fair value of Actua’s reporting units substantially exceeded their carrying value for each of those reporting units, including goodwill.

Actua also performs ongoing business reviews of its cost method businesses. Refer to Note 4, "Consolidated Businesses," and Note 7, "Equity and Cost Method Businesses."

Intangible assets

The following table summarizes Actua’s intangible assets:



(in thousands)		As of December 31, 2016
		Gross carrying		Accumulated			Net carrying
Intangible assets	Useful life	amount		amortization			amount
Customer relationships	1-11 years	$	65,603	$	(21,783	)	$	43,820
Trademarks/trade names	3-11 years	22,904		(10,043		)	12,861
Technology	5-10 years	26,334		(10,675		)	15,659
Non-compete agreements	2-5 years	3,915		(3,549		)	366
		118,756		(46,050		)	72,706
Other intellectual property ⁽¹⁾	Indefinite	700		—			700
		$	119,456	$	(46,050	)	$	73,406



(in thousands)		As of December 31, 2015
		Gross carrying		Accumulated			Net carrying
Intangible assets	Useful life	amount		amortization			amount
Customer relationships	1-11 years	$	61,820	$	(14,377	)	$	47,443
Trademarks/trade names	3-11 years	22,898		(6,829		)	16,069
Technology	5-10 years	23,086		(6,945		)	16,141
Non-compete agreements	2-5 years	3,605		(3,515		)	90
		111,409		(31,666		)	79,743
Other intellectual property ⁽¹⁾	Indefinite	700		—			700
		$	112,109	$	(31,666	)	$	80,443

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⁽¹⁾	Included in this line item is a domain name valued at $0.3 million that Actua currently believes has an indefinite life and a domain name for which Actua estimated the residual value to approximate its carrying value of $0.4 million as of both December 31, 2016 and December 31, 2015.

Amortization expense for intangible assets during the years ended December 31, 2016, 2015 and 2014 was $14.4 million, $13.4 million and $9.0 million, respectively.

Remaining estimated amortization expense for the respective years is set forth as follows:



(in thousands)

2017	$	14,377
2018	12,912
2019	11,370
2020	9,930
2021	9,834
Thereafter	14,283
Remaining amortization expense	$	72,706

- 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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