Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 are as follows:



	Amount
	(In Thousands)
Balance at December 31, 2012	$	37,750
Acquisition of mobile development company in 2013	750
Balance at December 31, 2013	$	38,500
Acquisition of the assets of Gojee, Inc	500
Acquisition of the assets of Two Bright Lights, Inc.	4,350
Adjustment to deferred tax assets	(1,479		)
Balance at December 31, 2014	$	41,871

See details on assets acquired in Note 5. See Note 2 for information regarding our annual impairment methodology. The Company performed goodwill impairment testing as of December 31, 2014 and 2013, and no impairments were recorded.

During the year ended December 31, 2014, the Company determined that it understated the value of net operating loss carryforwards recorded as part of its September 2006 acquisition of WeddingChannel. During the year ended December 31, 2014, the Company made an adjustment to increase the deferred tax asset associated with these net operating loss carryforwards and decrease goodwill by approximately $1.5 million, which represents the tax impact of approximately $4.9 million net operating loss carryforwards not recorded at the acquisition date.

Other intangible assets consisted of the following:



	December 31, 2014							December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Cost		Gross Carrying Amount		Accumulated Amortization			Net Cost
	(In Thousands)
Indefinite lived intangible assets:
Trade names	$	480	$	—		$	480	$	480	$	—		$	480
URLs	35		—			35		127		—			127
Subtotal indefinite lived intangible assets	$	515	$	—		$	515	$	607	$	—		$	607
Definite lived intangible assets:
Customer and advertiser relationships	$	897	$	(365	)	$	532	$	324	$	(251	)	$	73
Media content	325		(49		)	276		—		—			—
Developed technology and patents	523		(283		)	240		523		(258		)	265
Service contracts and other	150		(56		)	94		94		(47		)	47
Trademarks and trade names	3,571		(3,541		)	30		3,643		(1,278		)	2,365
Subtotal definite lived intangible assets	$	5,466	$	(4,294	)	$	1,172	$	4,584	$	(1,834	)	$	2,750
Total intangible assets	$	5,981	$	(4,294	)	$	1,687	$	5,191	$	(1,834	)	$	3,357

The Company evaluates intangible assets annually as of October 1 for impairment, or more often if indicators of impairment exist. In order to complete its impairment analysis, the Company estimates fair value using multiple approaches. In its assessment of impairment of intangible assets, the Company considers whether events or changes in circumstances such as significant declines in revenues, earnings or material adverse changes in the business climate indicate that the carrying value of assets may be impaired.

The annual impairment analysis for the year ended December 31, 2014 resulted in the Company concluding that a definite-lived trade name and certain URLs were impaired, resulting in an impairment charge of $0.2 million. The annual impairment analysis for the year ended December 31, 2013 resulted in the Company concluding that an indefinite-lived trade name from a prior year acquisition was impaired, primarily based on an analysis of future cash flows expected to be generated by this trade name. As a result, an impairment charge of $0.2 million, representing the full carrying value of the asset, was recorded.

During the year ended December 31, 2013, the Company concluded there were further impairment indicators with respect to the WeddingChannel trade name, which was categorized as a definite-lived intangible asset as of December 31, 2012. Impairment indicators included continued declines in revenue, traffic and membership related to this site. As a result of its review, the Company recorded a non-cash impairment of $1.2 million to write down the value of the trade name. The resulting fair value measurement was considered to be a Level 3 measurement and was determined using a discounted cash flow methodology with assumptions for cash flows, royalty rate, and discount rate. The Company also evaluated the estimated useful life of this trade name asset, concluding that the remaining carrying value of the trade name should be amortized over a period of one year. During the year ended December 31, 2014, the Company accelerated amortization of the WeddingChannel trade name of $2.1 million.

During the year ended December 31, 2012, the Company concluded there were impairment indicators with respect to the WeddingChannel trade name. The impairment indicators included trending declines in revenue, as well as lower advertising and registry services revenue attributable to this trade name. Based primarily on future cash flow projections for the lines of business most closely related to this trade name, the Company concluded that an impairment charge of $0.7 million was necessary in the third quarter of 2012. During the fourth quarter of 2012, the Company determined that, based on prior period impairment charges and management's evaluation of the estimated future cash flows associated with this intangible asset, the WeddingChannel trade name should be categorized as a definite-lived intangible asset and amortized over an estimated useful life of 5 years.

During the year ended December 31, 2012, based on management's evaluation of the estimated future cash flows, the Company determined that the trade name of an e-commerce company acquired in May 2009 should be categorized as a definite-lived intangible asset and amortized over an estimated useful life of 3 years. These factors resulted in impairment charges of $0.2 million against the e-commerce company's trade name during the year ended December 31, 2012.

Amortization expense for definite-lived intangible assets was $2.5 million, $1.1 million and $0.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. Estimated annual amortization expense is $0.2 million in 2015, $0.2 million in 2016, $0.2 million in 2017, $0.2 million in 2018, and $0.1 million thereafter.

- 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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