Goodwill and Intangible Assets, Net

6 Months Ended

Jun. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

7. Goodwill and Intangible Assets, net

The following table presents the changes to goodwill for the six months ended June 30, 2018 (in thousands):

Goodwill – December 31, 2017 ⁽¹⁾	$	730,464
Additions		223,833
Foreign currency translation adjustments ⁽²⁾		(5,039	)
Goodwill – June 30, 2018 ⁽¹⁾	$	949,258

(1)

There are no accumulated impairments losses at the beginning or end of any period presented.

(2)

The decrease is primarily related to translation gains on goodwill associated with the acquisition of NaturalMotion which the functional currency is denominated in British Pounds.

The details of our acquisition-related intangible assets as of June 30, 2018 and December 31, 2017 are as follows (in thousands):

	June 30, 2018
	Gross Carrying Value		Accumulated Amortization			Net Book Value
Developed technology	$	266,239	$	(154,935	)	$	111,304
Trademarks, branding and domain names		32,772		(10,470	)		22,302
Noncompetition agreements		8,390		(5,093	)		3,297
Acquired lease intangibles		5,708		(5,439	)		269
Total	$	313,109	$	(175,937	)	$	137,172

	December 31, 2017
	Gross Carrying Value		Accumulated Amortization			Net Book Value
Developed technology	$	197,908	$	(147,427	)	$	50,481
Trademarks, branding and domain names		18,272		(10,152	)		8,120
Noncompetition agreements		8,390		(3,079	)		5,311
Acquired lease intangibles		5,708		(5,362	)		346
Total	$	230,278	$	(166,020	)	$	64,258

Our trademarks, branding and domain names intangible assets include $6.1 million of indefinite-lived intangible assets as of June 30, 2018 and December 31, 2017. The remaining assets were, and continue to be, amortized on a straight-line basis. Amortization expense related to intangible assets was $6.0 million and $10.6 million for the three and six months ended June 30, 2018, respectively. Comparatively, amortization expense related to intangible assets was $4.1 million and $9.5 million for the three and six months ended June 30, 2017, respectively.

As of June 30, 2018, the weighted-average remaining useful lives of our acquired intangible assets are 4.0 years for developed technology, 6.8 years for trademarks, branding and domain names, 1.1 years for noncompetition agreements, 1.8 years for acquired lease intangibles and 4.3 years in total, for all acquired intangible assets.

As of June 30, 2018, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands):

Year ending December 31:
Remaining 2018	$	18,542
2019		32,409
2020		31,149
2021		23,596
2022		16,368
Thereafter		8,988
Total	$	131,052

- 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.

+ References + Details