8. Acquired Intangible Assets, net

The Company evaluates the recoverability of its long-lived assets for impairment annually in the fourth fiscal quarter or more frequently if indicators of potential impairment arise. The Company did not recognize any impairment of its acquired intangible assets during fiscal year 2015.

As a result of the divestiture of the PowerReviews business (See Note 3), the Company evaluated the recoverability of its long-lived assets resulting from the acquisition of PowerReviews. The Company performed the first step of 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 April 30, 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 did not exceed the carrying value of the asset group as of April 30, 2014. As a result, the Company incurred a $2.5 million impairment loss, $2.4 million of which was allocated to customer relationships and $0.1 million of which was allocated to developed technology. Due to the classification of the PowerReviews business as discontinued operations, the $2.5 million impairment loss is included in the loss from discontinued operations, net of tax, in the consolidated statements of operations for fiscal year ended April 30, 2014.

On December 1, 2012, the Company closed an agreement to purchase customer contracts operated in Europe by Shopzilla, Inc. (“Shopzilla”) using PowerReviews technology under a license agreement between Shopzilla and PowerReviews. The Company determined that the transaction did not constitute a business combination. The entire purchase price of $4.7 million was allocated to a customer relationship intangible asset as the intent of the purchase was to gain access to Shopzilla’s contractual customer relationships. Cash remitted on the date of purchase was $4.2 million, and $0.5 million of the purchase price was recorded as a holdback liability in accrued expenses and other current liabilities as of April 30, 2013. The hold back liability was paid in the third quarter of fiscal 2014. In January 2014 and March 2013, the Company purchased additional customer contracts from Shopzilla for $30 thousand and $0.2 million, respectively. The useful life of the acquired contractual customer relationships was determined to be ten years. As these clients are supported by the PowerReviews platform, they were part of the PowerReviews divestiture (See Note 3). As a result, the customer relationship intangible asset has been included in discontinued operations as a component of “Assets held for sale” as of April 30, 2014.

Acquired intangible assets, net, as of April 30, 2015 and April 30, 2014 for continuing operations are as follows (in thousands):


	April 30,
	2015							2014
	Gross Fair Value		Accumulated Amortization			Net Book Value		Gross Fair Value		Accumulated Amortization			Net Book Value
Customer relationships	$	11,835	$	(2,921	)	$	8,914	$	11,835	$	(1,684	)	$	10,151
Developed technology		3,265		(681	)		2,584		3,265		(28	)		3,237

Total	$	15,100	$	(3,602	)	$	11,498	$	15,100	$	(1,712	)	$	13,388

Acquired intangible assets, net, as of July 2, 2014 and April 30, 2014 for discontinued operations are as follows (in thousands):


	July 2,										April 30,
	2014										2014
	Gross Fair Value		Accumulated Amortization			Impairment			Net Book Value		Gross Fair Value		Accumulated Amortization			Impairment			Net Book Value
Customer relationships	$	39,966	$	(7,463	)	$	(2,354	)	$	30,149	$	39,966	$	(7,463	)	$	(2,354	)	$	30,149
Developed technology		5,400		(3,390	)		(146	)		1,864		5,400		(3,390	)		(146	)		1,864
Domain name (indefinite useful life)		800		—			—			800		800		—			—			800

Total	$	46,166	$	(10,853	)	$	(2,500	)	$	32,813	$	46,166	$	(10,853	)	$	(2,500	)	$	32,813

Because the sale of the PowerReviews business was completed on July 2, 2014, there were no acquired intangible assets, net, for discontinued operations as of April 30, 2015.

The amortization of customer relationships is recorded as amortization expense and the amortization for developed technology is recorded in cost of revenue. For the years ended April 30, 2015 and April 30, 2014, the Company incurred amortization expense of acquired intangible assets of $1.9 million and $1.1 million, respectively.

The following table presents our estimate of future amortization expense for definite-lived intangible assets (in thousands):


Fiscal period:	Amount
Fiscal year 2016	$	1,890
Fiscal year 2017		1,890
Fiscal year 2018		1,890
Fiscal year 2019		1,856
Fiscal year 2020		1,130
Thereafter		2,842

Total	$	11,498