Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2013

3. Goodwill and Intangible Assets

Goodwill and intangible assets, including those acquired in connection with the above acquisition, consisted of the following as of December 31, 2011, 2012 and June 30, 2013 (unaudited) (in thousands):

	December 31, 2011				December 31, 2012				June 30, 2013

Developed technology	$	—		—	$	1,300		4.8	$	1,300		4.3
Domain names		—		—		700		6.3		700		5.8
Customer relationships		—		—		900		7.8		900		7.3
Non-compete agreements		—		—		130		1.3		130		0.8
Capitalized software development costs		877		1.7		877		0.8		1,105		1.3

		877				3,907				4,135
Less accumulated amortization		(633	)			(1,173	)			(1,490	)

Intangible assets, net		244				2,734				2,645
Goodwill		—				9,537				9,537

Goodwill and intangible assets, net	$	244			$	12,271			$	12,182

As of December 31, 2012, total future expected amortization is as follows for the following years ending December 31 (in thousands):

	Developed Technology		Domain Names		Customer Relationships		Non-compete Agreements		Capitalized Software Development Costs

2013	$	229	$	100	$	106	$	65	$	101
2014		229		100		106		19		—
2015		229		100		106		—		—
2016		229		100		106		—		—
2017		179		100		106		—		—
2018 and beyond		—		129		295		—		—

	$	1,095	$	629	$	825	$	84	$	101

As of June 30, 2013, total future expected amortization is as follows for the remainder of 2013 and the subsequent years ending December 31 (in thousands, unaudited):

	Developed Technology		Domain Names		Customer Relationships		Non-compete Agreements		Capitalized Software Development Costs

2013 (6 months)	$	114	$	50	$	53	$	32	$	99
2014		229		100		106		19		152
2015		229		100		106		—		10
2016		229		100		106		—		—
2017		181		100		106		—		—
2018 and beyond		—		129		295		—		—

	$	982	$	579	$	772	$	51	$	261

Amortization expense related to intangible assets was $192,000, $181,000 and $540,000 in 2010, 2011 and 2012, respectively. Amortization expense related to intangible assets was $193,000 and $317,000 for the six months ended June 30, 2012 (unaudited) and 2013 (unaudited), respectively.

- 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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