Yahoo 2015 Annual Report Download - page 127
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Note 6 Intangible Assets, Net
The following table summarizes the Company’s intangible assets, net (in thousands):
December 31, 2014
Gross Carrying
Amount
Accumulated
Amortization(*) Net
Customer, affiliate, and advertiser related relationships
$369,914 $ (88,318) $281,596
Developed technology and patents
206,422 (83,748) 122,674
Tradenames, trademarks, and domain names
107,841 (41,269) 66,572
Total intangible assets, net
$684,177 $(213,335) $470,842
December 31, 2015
Gross Carrying
Amount
Accumulated
Amortization(*) Net
Customer, affiliate, and advertiser related relationships
$355,568 $(135,513) $220,055
Developed technology and patents
170,289 (83,380) 86,909
Tradenames, trademarks, and domain names
67,119 (26,814) 40,305
Total intangible assets, net
$592,976 $(245,707) $347,269
(*) Cumulative foreign currency translation adjustments, reflecting movement in the currencies of
the underlying entities, totaled approximately $18 million for the both years ended as of
December 31, 2014 and 2015.
The intangible assets have estimated useful lives as follows:
• Customer, affiliate, and advertiser related relationships—two to six years;
• Developed technology and patents—one to six years; and
• Tradenames, trademarks, and domain names—one to seven years.
The Company recognized amortization expense for intangible assets of $97 million, $132 million, and
$137 million for 2013, 2014, and 2015, respectively, including $52 million, $65 million, and $58 million,
respectively, included in cost of revenue-other. Based on the current amount of intangibles subject to
amortization, the estimated amortization expense for each of the succeeding years is as follows:
2016: $114 million; 2017: $104 million; 2018: $84 million; 2019: $44 million; 2020 and cumulatively
thereafter: $1 million.
Intangibles Impairment Testing
The Company reviews identifiable intangible assets to be held and used for impairment whenever
events or changes in circumstances indicate that the carrying value of the assets may not be
recoverable. Determination of recoverability is based on the lowest level of identifiable estimated
undiscounted cash flows resulting from use of the asset and its eventual disposition. Intangible assets
with indefinite useful lives are not amortized but are reviewed for impairment whenever events or
changes in circumstances indicate that it is more likely than not that the fair value is less than its
carrying amount. If the Company determines that an intangible asset with an indefinite life is more
likely than not impaired, a quantitative test comparing the fair value of the indefinite-lived purchased
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