Table of Contents 

INFOSPACE, INC. 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 

Years Ended December 31, 2001, 2000 and 1999 

exercisable for approximately 5.8 million shares in nine companies, five of which were public companies and the remainder were privately held 

entities. As of December 31, 2001 and 2000, total warrant investments were $7.8 million and $18.5 million, respectively.  

From January 1, 2000 to March 31, 2001, the Company held a majority ownership in the Venture Fund. In accordance with investment 

company accounting, all investments held in the Venture Fund were recorded at their fair market value and unrealized gains and losses on the 

investments were recorded as gains or losses in the statement of operations of the Venture Fund. Since the Company was the majority owner of 

the Venture Fund, the Venture Fund's financial statements were consolidated with InfoSpace's financial statements. The Company has 

recorded minority interest on the Balance Sheet and Statement of Operations for the employee owned portion of the fund during the period the 

Venture Fund was active.  

On January 26, 2001 the Company's Board of Directors approved the liquidation of the Venture Fund. In the quarter ended March 31, 

2001, the Company disbursed $16.4 million to the accredited investors for their original investment amount, representing 100% of the 

accredited investor ownership. The Board of Directors also approved the acceleration of the vesting of the Company's contribution on behalf of 

its employees. The contribution was paid out in conjunction with the dissolution of the Venture Fund, resulting in compensation expense of 

$1.0 million in 2001.  

The Company recorded impairment charges totaling of $100.9 million and $20.4 million for the years ended December 31, 2001 and 

December 31, 2000, respectively, related to certain of its public and private investments for which declines in fair value below the Company's 

accounting basis was determined to be other than temporary. The impairment charges are reflected in loss on investments in the Statement of 

Operations.  

Loss on investments, net is comprised of the following for the years ended December 31, 2001 and 2000:  

2001 

2000 

(in thousands) 

Gain on Venture Fund investments 

$ 

880   

$ 

14,830   

Gain (loss) on sale of investments 

(2,688 ) 

4,940   

Other than temporary investment impairments 

(100,918 ) 

(20,358 ) 

Decrease in fair value of warrants 

(5,432 ) 

$ 

(108,158 ) 

$ 

(588 ) 

Note 5:  Intangible Impairment 

In accordance with SFAS No. 121, the Company evaluated its long lived assets and recorded an impairment loss on intangible assets of 

$107.7 million during the year ended December 31, 2001. This amount is comprised of $2.8 million of charges related to assembled workforce 

intangibles, $40.7 million of charges related to abandoned technology and related goodwill amounts, and $64.2 million related to writedowns 

of the core technology and associated goodwill from the sale, in July 2001, of certain assets previously acquired in the January 2001 acquisition 

of Locus Dialogue, Inc. (Note 7).  

The assembled workforce intangible impairment charges of $2.8 million recorded during the year ended December 31, 2001 are 

associated with several previous acquisitions for which the Company determined, based on substantial declines in the acquired workforce, that 

the fair values assigned to these assets were less than the recorded amounts. As such, the Company determined the fair value of the remaining 

workforce intangible using  

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