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424B4
IQIYI, INC. filed this Form 424B4 on 03/29/2018
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Table of Contents

iQIYI, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2015, 2016 AND 2017—continued

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares (or ADS) and per share (or ADS) data)

 

Amortization expense of RMB2,293,735, RMB4,036,121 and RMB7,491,955 (US$1,151,492) for the years ended December 31, 2015, 2016 and 2017, respectively, was recognized as cost of revenues. Estimated amortization expense relating to the existing licensed copyrights for each of the next five years is as follows:

 

     RMB      US$  

Within 1 year

     3,182,287        489,109  

Between 1 and 2 years

     1,247,538        191,743  

Between 2 and 3 years

     694,405        106,728  

Between 3 and 4 years

     211,574        32,518  

Between 4 and 5 years

     33,075        5,083  

 

8. INTANGIBLE ASSETS, NET

 

     As of December 31, 2016  
     Gross carrying
value
     Accumulated amortization      Net carrying
value
 
     RMB      RMB      RMB  

Traffic acquisition agreement (i)

     218,500        (122,220      96,280  

Trademarks

     158,000        (56,617      101,383  

User list

     148,500        (148,500      —    

Domain names

     140,400        (56,864      83,536  

Customer relationships

     119,700        (119,700      —    

Others

     188,547        (86,771      101,776  
  

 

 

    

 

 

    

 

 

 
     973,647        (590,672      382,975  
  

 

 

    

 

 

    

 

 

 

 

     As of December 31, 2017  
     Gross carrying
value
     Accumulated
amortization
     Net carrying value      Net carrying
value
 
     RMB      RMB      RMB      US$  

Traffic acquisition agreement (i)

     218,500        (152,152      66,348        10,198  

Trademarks

     158,189        (72,434      85,755        13,180  

User list

     148,500        (148,500      —          —    

Domain names

     140,453        (70,943      69,510        10,683  

Customer relationships

     119,700        (119,700      —          —    

Others

     344,308        (137,916      206,392        31,722  
  

 

 

    

 

 

    

 

 

    

 

 

 
     1,129,650        (701,645      428,005        65,783  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(i) Pursuant to the services agreement entered into between the Company and Baidu on March 15, 2010 (amended and restated on August 15, 2010 and December 6, 2011), Baidu provides traffic acquisition services to the Group over a ten year period. Due to Baidu’s acquisition of the Company in November 2012 and the Company’s election to apply pushdown accounting (Note 1), a favorable contract asset with a useful life of 7.3 years was recorded.

No impairment charges were recognized on intangible assets for the years ended December 31, 2015, 2016 and 2017, respectively.

 

F-43