Goodwill and Acquired Intangible Assets
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 were as follows (in thousands):
|
| | | | | | | |
| December 31, 2013 | | December 31, 2012 |
Beginning balance | $ | 723,701 |
| | $ | 452,914 |
|
Additions | 35,606 |
| | 270,787 |
|
Disposals | (1,939 | ) | | — |
|
Ending balance | $ | 757,368 |
| | $ | 723,701 |
|
The additions to goodwill during the year ended December 31, 2013 were related to the acquisitions of strategic network assets from AT&T Services, Inc. ("AT&T") and of Velocius. The disposal of goodwill during the year ended December 31, 2013 was related to the sale of the Company's Advertising Decision Solutions ("ADS") business. The additions to goodwill during the year ended December 31, 2012 were related to the acquisitions of Blaze Software, Inc. ("Blaze"), Cotendo, Inc. ("Cotendo"), FastSoft, Inc. ("FastSoft") and Verivue.
Acquired intangible assets that are subject to amortization consisted of the following as of December 31, 2013 and 2012 (in thousands):
|
| | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2013 | | December 31, 2012 |
Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
Completed technologies | $ | 65,631 |
| | $ | (35,476 | ) | | $ | 30,155 |
| | $ | 71,531 |
| | $ | (32,842 | ) | | $ | 38,689 |
|
Customer relationships | 115,100 |
| | (75,563 | ) | | 39,537 |
| | 104,700 |
| | (68,702 | ) | | 35,998 |
|
Non-compete agreements | 7,950 |
| | (2,623 | ) | | 5,327 |
| | 14,770 |
| | (7,645 | ) | | 7,125 |
|
Trademarks and trade names | 3,400 |
| | (990 | ) | | 2,410 |
| | 3,700 |
| | (958 | ) | | 2,742 |
|
Acquired license rights | 490 |
| | (490 | ) | | — |
| | 490 |
| | (490 | ) | | — |
|
Total | $ | 192,571 |
| | $ | (115,142 | ) | | $ | 77,429 |
| | $ | 195,191 |
| | $ | (110,637 | ) | | $ | 84,554 |
|
Aggregate amortization expense of acquired intangible assets for the years ended December 31, 2013, 2012 and 2011 was $21.5 million, $21.0 million and $17.1 million, respectively. Based on intangible assets held as of December 31, 2013, amortization expense is expected to be approximately $20.6 million, $18.9 million, $14.5 million, $10.2 million and $4.4 million for the years ending December 31, 2014, 2015, 2016, 2017 and 2018, respectively.
