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Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
Note 5: Goodwill and Intangible Assets

Goodwill

Goodwill is tested for impairment at the reporting unit level which is one level below the Company's operating segments. During the first step of the Company's annual impairment analysis during the fourth quarters of 2016 and 2015, the Company determined that the carrying amount of the Company's goodwill for all of its reporting units was recoverable and no step 2 tests were required for any reporting unit.

The Company uses the income approach, based on estimated future cash flows, to perform the goodwill impairment test. These estimates include assumptions about future conditions such as future revenues, gross profits, operating expenses, and industry trends. The Company considers other valuation methods, such as the cost approach or market approach, if it determines that these methods provide a more representative approximation of fair value. The material assumptions used for the income approach for periods when no impairment was necessary included projected net cash flows, a weighted-average discount rate of approximately 10.5%, and a weighted-average long-term growth rate of 3%. The Company considered historical rates and current market conditions when determining the discount and growth rates to use in the Company's analysis. As noted above, there were no impairment charges as a result of the annual impairment analysis in 2016.

During the Company's annual impairment analysis in the fourth quarter of 2014, the Company determined that the fair values of certain of its reporting units were less than the carrying value. As a result of the 2014 impairment analysis, the Company recognized a goodwill impairment charge of $8.7 million relating to one of its reporting units in the Analog Solutions Group operating segment.

The following table summarizes goodwill by relevant reportable segment as of December 31, 2016 and December 31, 2015 (in millions): 
 
 
Balance as of December 31, 2016
 
Balance as of December 31, 2015
 
 
Goodwill
 
Accumulated Impairment Losses
 
Carrying Value
 
Goodwill
 
Accumulated Impairment Losses
 
Carrying Value
Operating Segment
 
 
 
 
 
 
 
 
 
 
 
 
Analog Solutions Group
 
$
836.7

 
$
(418.9
)
 
$
417.8

 
$
546.7

 
$
(418.9
)
 
$
127.8

Image Sensor Group
 
96.8

 
—

 
96.8

 
95.4

 
—

 
95.4

Power Solutions Group
 
438.7

 
(28.6
)
 
410.1

 
76.0

 
(28.6
)
 
47.4

Total
 
$
1,372.2

 
$
(447.5
)
 
$
924.7

 
$
718.1

 
$
(447.5
)
 
$
270.6



The following table summarizes the change in goodwill from December 31, 2014 to December 31, 2016 (in millions):
Net balance as of December 31, 2014
 
$
263.8

Additions due to business combinations
 
6.8

Net balance as of December 31, 2015
 
270.6

Additions due to business combination
 
657.5

Divestiture of business
 
(3.4
)
Net balance as of December 31, 2016
 
$
924.7



Intangible Assets

Intangible assets, net, were as follows as of December 31, 2016 and December 31, 2015 (in millions):
 
December 31, 2016
 
Original
Cost
 
Accumulated
Amortization
 
Accumulated Impairment Losses
 
Carrying
Value
Intellectual property
$
13.9

 
$
(11.2
)
 
$
(0.4
)
 
$
2.3

Customer relationships
549.0

 
(283.3
)
 
(19.5
)
 
246.2

Patents
43.7

 
(25.4
)
 
(13.7
)
 
4.6

Developed technology
566.9

 
(201.6
)
 
(2.6
)
 
362.7

Trademarks
17.2

 
(11.6
)
 
(1.1
)
 
4.5

Backlog
3.3

 
(2.4
)
 
—

 
0.9

Favorable Leases
1.5

 
(0.4
)
 
—

 
1.1

IPRD
145.8

 
—

 
(6.0
)
 
139.8

Total intangibles
$
1,341.3

 
$
(535.9
)
 
$
(43.3
)
 
$
762.1

 
December 31, 2015
 
Original
Cost
 
Accumulated
Amortization
 
Accumulated Impairment Losses
 
Carrying
Value
Intellectual property
$
13.9

 
$
(10.6
)
 
$
(0.4
)
 
$
2.9

Customer relationships
419.8

 
(239.6
)
 
(19.8
)
 
160.4

Patents
43.7

 
(23.6
)
 
(13.7
)
 
6.4

Developed technology
268.0

 
(152.2
)
 
(2.6
)
 
113.2

Trademarks
16.3

 
(9.9
)
 
(1.1
)
 
5.3

Backlog
0.3

 
(0.3
)
 
—

 
—

IPRD
41.4

 
—

 
(3.8
)
 
37.6

Total intangibles
$
803.4

 
$
(436.2
)
 
$
(41.4
)
 
$
325.8




During the year ended December 31, 2016, the Company canceled certain of its previously capitalized IPRD projects under the Image Sensor Group and recorded impairment losses of $2.2 million, included in the “Goodwill and intangible asset impairment” caption on the Company's Consolidated Statements of Operations and Comprehensive Income. Additionally, during the year ended December 31, 2016, the Company completed certain of its IPRD projects, resulting in the reclassification of $21.6 million from IPRD to developed technology. The Company also acquired $547.8 million of intangibles from the acquisition of Fairchild and resulting purchase accounting.

As a result of the Company's annual goodwill impairment testing for 2014, it was determined that certain intangible assets belonging to a reporting unit within the Analog Solutions Group were impaired. In connection with this impairment, the Company wrote-off approximately $0.9 million of intangible assets associated with the Analog Solutions Group operating segment. Additionally, during the fourth quarter of 2014, the Company wrote off approximately $4.7 million of other long-lived assets associated with the Analog Solutions Group. See Note 13: ''Fair Value Measurements'' for additional information with respect to the Company's non-recurring fair value measurements.

Amortization expense for intangible assets amounted to: $104.8 million for the year ended December 31, 2016, $135.7 million for the year ended December 31, 2015 and $68.4 million for the year ended December 31, 2014. Amortization expense for intangible assets, with the exception of the $139.8 million of IPRD assets that will be amortized once the corresponding projects have been completed, is expected to be as follows over the next five years, and thereafter (in millions):
 
Total
2017
$
112.8

2018
94.5

2019
87.7

2020
72.4

2021
59.7

Thereafter
195.2

Total estimated amortization expense
$
622.3