Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

4. Goodwill and Intangible Assets

The following table presents the changes in our goodwill balance (in thousands):


Balance at December 31, 2015	$	10,358
Acquisitions		822
Balance at September 30, 2016	$	11,180

The change in goodwill in 2016 is attributable to the acquisition of Other Art Fairs Ltd, which operates as The Other Art Fair, in July 2016. See Note 11 for additional information. Goodwill is tested at the reporting unit level and as of September 30, 2016, we have two reporting units: marketplaces and content and media. As of September 30, 2016, our goodwill balance related entirely to our marketplaces reporting unit.

Intangible assets consisted of the following (in thousands):


	September 30, 2016
	Gross carrying		Accumulated		Net carrying
	amount		amortization		amount
Customer relationships	$	1,628	$	(1,347)	$	281
Artist relationships		11,927		(10,278)		1,649
Media content		93,655		(88,553)		5,102
Technology		5,854		(3,603)		2,251
Non-compete agreements		25		(9)		16
Trade names		7,691		(4,020)		3,671
	$	120,780	$	(107,810)	$	12,970


	December 31, 2015
	Gross carrying		Accumulated		Net carrying
	amount		amortization		amount
Customer relationships	$	1,628	$	(1,107)	$	521
Artist relationships		11,719		(8,340)		3,379
Media content		95,785		(85,018)		10,767
Technology		5,854		(2,842)		3,012
Non-compete agreements		217		(160)		57
Trade names		7,150		(3,554)		3,596
	$	122,353	$	(101,021)	$	21,332

Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives commencing on the date that the asset is available for its intended use.

Total amortization expense for the periods shown below includes (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Service costs	$	2,424	$	1,969	$	5,910	$	10,683
Sales and marketing		281		949		2,178		2,914
Product development		247		246		740		1,193
General and administrative		148		277		418		587
Total amortization	$	3,100	$	3,441	$	9,246	$	15,377

Service costs include accelerated amortization charges of $1.2 million and $0.1 million for the three months ended September 30, 2016 and 2015, respectively, and $1.7 million and $3.3 million for the nine months ended September 30, 2016 and 2015, respectively, as a result of removing certain assets from service.

- 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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