GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2014

Changes in Carrying Amount of Goodwill

The following table presents the changes in the carrying amount of goodwill:

(in thousands)	2014
Balance as of January 1,	$	37,463
Purchase price adjustments to goodwill retroactively applied (1)		2,866
Goodwill acquired		134
Balance as of June 30,	$	40,463

(1) The purchase price adjustments identified during the first six months of 2014 have been retroactively applied as of December 31, 2013.

Schedule of Amortizable Intangible Assets

Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives.

(in thousands)	Range of Useful Lives		Cost		Accumulated Amortization		Net Book Value
As of June 30, 2014
Customer related intangibles		4-9 years	$	48,634	$	(21,311)	$	27,323
Technology		3-9 years		47,616		(26,189)		21,427
Other intangibles		1-5 years		4,810		(3,500)		1,310
Total			$	101,060	$	(51,000)	$	50,060
			Cost		Accumulated Amortization		Net Book Value
As of December 31, 2013
Customer related intangibles		4-9 years	$	48,634	$	(18,317)	$	30,317
Technology		3-9 years		47,102		(22,873)		24,229
Other intangibles		1-5 years		4,658		(2,630)		2,028
Total			$	100,394	$	(43,820)	$	56,574

Amortization Expense of Acquired Intangibles

Amortization of intangibles was reflected in the Company’s unaudited condensed consolidated statements of operations as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2014		2013		2014		2013
Cost of revenue	$	1,444	$	1,541	$	3,284	$	3,082
Selling and marketing		1,499		1,232		2,995		2,464
General and administrative		481		—		901		4
Total amortization expense	$	3,424	$	2,773	$	7,180	$	5,550

Estimated Future Amortization Expense

Amortization of intangibles is estimated to be recorded over their remaining useful lives as follows:

(in thousands) as of June 30, 2014	Future estimated amortization expense
Remainder of 2014	$	6,209
2015		11,557
2016		11,145
2017		9,564
2018		8,688
2019		2,897
	$	50,060