GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2012

NOTE 4—GOODWILL AND INTANGIBLE ASSETS

The balance of goodwill and intangible assets, net is as follows (in thousands):

	December 31, 2012		December 31, 2011

Goodwill	$	3,632	$	3,632

Intangible assets with indefinite lives	$	10,142	$	10,142
Intangible assets with definite lives, net		689		1,047

Total intangible assets, net	$	10,831	$	11,189

Intangible assets with indefinite lives relate principally to our trademarks. At December 31, 2012, intangible assets with definite lives relate to the following ($ in thousands):

	Cost		Accumulated Amortization			Net

Purchase agreements	$	236	$	(165	)	$	71	5.0
Technology		25,194		(25,158	)		36	3.0
Customer lists		6,682		(6,106	)		576	4.2
Other		1,517		(1,511	)		6	2.5

Total	$	33,629	$	(32,940	)	$	689

At December 31, 2011, intangible assets with definite lives relate to the following ($ in thousands):

	Cost		Accumulated Amortization			Net

Purchase agreements	$	50,411	$	(50,293	)	$	118	5.0
Technology		25,194		(25,034	)		160	3.0
Customer lists		6,682		(6,045	)		637	4.2
Other		1,516		(1,384	)		132	2.5

Total	$	83,803	$	(82,756	)	$	1,047

Amortization of intangible assets with definite lives is computed on a straight-line basis and, based on balances as of December 31, 2012, such amortization is estimated to be as follows (in thousands):

	Amount

Year ending December 31, 2013	$	147
Year ending December 31, 2014		86
Year ending December 31, 2015		60
Year ending December 31, 2016		60
Year ending December 31, 2017		60
Thereafter		276

Total	$	689

The following table presents the balance of goodwill, including changes in the carrying amount of goodwill, for the years ended December 31, 2012 and 2011 (in thousands):

	Total

Balance as of January 1, 2011
Goodwill	$	486,720
Accumulated impairment losses		(483,088	)

		3,632

Goodwill acquired during the year		—
Impairment losses		—
Other deductions		—

Balance as of December 31, 2011
Goodwill		486,720
Accumulated impairment losses		(483,088	)

		3,632

Goodwill acquired during the year		—
Impairment losses		—
Other deductions		—

Balance as of December 31, 2012
Goodwill		486,720
Accumulated impairment losses		(483,088	)

	$	3,632

We performed our annual impairment test as of October 1, 2012 but recorded no impairments for 2012.

We performed an interim impairment test in the second quarter of 2011 and our annual test as of October 1, 2011 and recorded impairment charges related to trade names and trademarks of $29.0 million and definite-lived intangible assets of $0.3 million. These impairments resulted from a lower observed market value of our common stock at June 30, 2011 and lower anticipated revenues related to our trade names and trademarks as a result of the anticipated sale of substantially all of the operating assets of LendingTree Loans. No additional impairments were recorded as of October 1, 2011.

- 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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