6. Acquired Intangible Assets, net

As a result of the ruling issued by the U.S. District Court for the Northern District of California, San Francisco Division, on January 8, 2014 providing that the acquisition of PowerReviews violated Section 7 of the Clayton Act, 15 U.S.C. Section 18, and a potential court ordered divestiture (See Note 10), the Company evaluated the recoverability of its long-lived assets resulting from the acquisition of PowerReviews.

The Company performed the first step of the impairment test by comparing the undiscounted cash flows to be generated by the asset group allocated to PowerReviews (inclusive of the value of the Customer relationships and Developed technology) to the carrying value of the asset group as of January 31, 2014. Undiscounted cash flows included the cash flows resulting from the continued operation of the asset group plus estimated probability weighted proceeds from a potential divestiture. The undiscounted cash flows of the assets exceeded the carrying value of the asset group as of January 31, 2014. As a result, this did not necessitate step two of the recoverability test and the Company did not record an impairment charge for its acquired intangible assets as of January 31, 2014.

In light of a potential court ordered divestiture, the Company has engaged in discussions with various potential purchasers of the PowerReviews’ asset group. The Company has determined that the asset group does not meet the held for sale criteria as of January 31, 2014 as the asset group is not available for immediate sale since the Company cannot predict the outcome or final terms of such discussions and any agreement to sell must be acceptable and approved by the court (See Note 10).

Acquired intangible assets, net, resulting from the acquisition of PowerReviews and Longboard Media, as of January 31, 2014 are as follows (in thousands):


	Gross Fair		Accumulated			Net Book
	Value		Amortization			Value
Customer relationships	$	51,266	$	(7,837	)	$	43,429
Developed technology		5,400		(2,940	)		2,460
Domain name (indefinite useful life)		800		—			800

	$	57,466	$	(10,777	)	$	46,689

Acquired intangible assets, net, resulting from the acquisition of PowerReviews and Longboard Media, as of April 30, 2013 are as follows (in thousands):


	Gross Fair		Accumulated			Net Book
	Value		Amortization			Value
Customer relationships	$	51,238	$	(3,924	)	$	47,314
Developed technology		5,400		(1,590	)		3,810
Domain name (indefinite useful life)		800		—			800

	$	57,438	$	(5,514	)	$	51,924

The expected future amortization expense for intangible assets for each of the fiscal years ended thereafter is as follows (in thousands):


Remaining three months of Fiscal 2014		1,754
Fiscal 2015		7,020
Fiscal 2016		5,312
Fiscal 2017		5,087
Fiscal 2018		5,087
Thereafter		21,629

Total amortization expense (customer relationships and developed technology)	$	45,889

In the fourth quarter of the current fiscal year, the Company’s management will evaluate the remaining useful life of its acquired intangibles which is dependent upon the outcome of the remedy proceedings in the PowerReviews litigation and the Company’s decision to appeal the final judgment.