Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2012

Goodwill and Other Intangible Assets

The change in the carrying amount of goodwill for the three months ended March 31, 2012 and the year ended December 31, 2011 is as follows:

	Amount
	(in thousands)

Balance at December 31, 2011	$	39,089

Reclassification to software intangible asset due to the finalization of purchase accounting on a company in which XO Group has an equity interest		(210	)

Balance at March 31, 2012	$	38,879

Other intangible assets consisted of the following:

	March 31, 2012							December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Cost		Gross Carrying Amount		Accumulated Amortization			Net Cost
	(in thousands)
Indefinite lived intangible assets:
Tradenames	$	6,497		-		$	6,497	$	6,497		-		$	6,497
URLs		91		-			91		84		-			84
Subtotal indefinite lived intangible assets		6,588		-			6,588		6,581		-			6,581

Definite lived intangible assets:
Customer and advertiser relationships		324		(188	)		136		324		(179	)		145
Developed technology and patents		495		(181	)		314		285		(139	)		146
Trademarks and tradenames		-		-			-		-		-			-
Service contracts and other		94		(30	)		64		94		(28	)		66
Subtotal definite lived intangible assets		913		(399	)		514		703		(346	)		357

Total intangible assets	$	7,501	$	(399	)	$	7,102	$	7,284	$	(346	)	$	6,938

Definite lived intangible assets are amortized over their estimated useful lives as follows:

Customer and advertiser relationships		2 to 10 years
Developed technology and patents		5 years
Trademarks and tradenames		3 to 5 years
Service contracts and other		1 to 7 years

Amortization expense was $53,000 and $350,000 for the three months ended March 31, 2012 and 2011, respectively. Estimated annual amortization expense is $162,000 in 2012, $144,000 in 2013, $105,000 in 2014, $85,000 in 2015 and $75,000 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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