AKAMAI TECHNOLOGIES INC | 2013 | FY | 3


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.

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