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Intangible Assets
 6 Months Ended
Jun. 30, 2012
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets
Intangible Assets
 
The following tables detail our intangible asset balances by major asset class:
 
 
June 30, 2012
 
December 31, 2011
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Impairment
 
Net
Carrying
Amount
Intangible asset class
 
 
 
 
 
 
 
 
 
 
 
 
 
Domain and trade names
$
33,345

 
$
(26,628
)
 
$
6,717

 
$
33,505

 
$
(11,255
)
 
$
(14,980
)
 
$
7,270

Customer relationships
10,651

 
(4,569
)
 
6,082

 
10,878

 
(3,826
)
 
—

 
7,052

Technology
4,141

 
(2,672
)
 
1,469

 
4,160

 
(1,287
)
 
—

 
2,873

Non-compete agreements
954

 
(659
)
 
295

 
982

 
(493
)
 
—

 
489

Intangible assets, net
$
49,091

 
$
(34,528
)
 
$
14,563

 
$
49,525

 
$
(16,861
)
 
$
(14,980
)
 
$
17,684


 
Amortization expense was $1,400 and $1,900 for the three months ended June 30, 2012, and June 30, 2011 respectively, and $2,815 and $3,535 for the six months ended June 30, 2012 and June 30, 2011 respectively. Intangible assets are amortized on a straight-line basis over their estimated economic lives. We believe that the straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained.
 
In January 2011, we determined that we would not support two brand names and URLs in the United States and decided that we would begin to migrate all traffic from sidestep.com to KAYAK.com. As a result of this triggering event, we prepared an analysis comparing expected future discounted cash flows to be generated by the SideStep domain and trade name asset to the carrying value of the asset. Our analysis resulted in:
 
•
A charge of $14,980 due to the impairment of the value of the SideStep brand name and URL,
•
A change in estimate that resulted in acceleration of amortization based on the estimated decline in queries directed from our SideStep URL through December 2013 to reflect the gradual transition of users to the KAYAK URL.

To determine fair value of the SideStep brand name and URL, we used an income approach, which utilized Level 3 fair value inputs as described in "-Note 15 - Fair Value Measurements", and discounted the expected cash flows of the intangible assets. We calculated expected cash flows, using an estimate of future revenue to be generated from the SideStep URL offset by estimated future expenses. We applied a discount rate of 17% representing the estimated weighted average cost of capital, which reflects the overall level of inherent risk involved in the respective operations and the rate of return an outside investor could expect to earn.