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Amortizable Intangible Assets and Goodwill
 3 Months Ended
Mar. 31, 2012
Amortizable Intangible Assets and Goodwill  
Amortizable Intangible Assets and Goodwill

12. Amortizable Intangible Assets and Goodwill

 

Amortizable Intangible Assets

 

The components of the Company’s intangible assets as of March 31, 2012 and December 31, 2011 were as follows:

 

 

 

 

 

As of March 31, 2012

 

 

 

Useful Life

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Net Carrying
Amount

 

 

 

 

 

(In thousands)

 

Patents

 

3 to 10 years

 

$

29,943

 

$

(13,965

)

$

15,978

 

Customer contracts and contractual relationships

 

1 to 10 years

 

32,650

 

(9,357

)

23,293

 

Existing technology

 

3 to 10 years

 

178,320

 

(22,913

)

155,407

 

Non-compete agreements

 

3 years

 

300

 

(83

)

217

 

Intellectual property

 

4 years

 

10,384

 

(10,384

)

—

 

Total intangible assets

 

 

 

$

251,597

 

$

(56,702

)

$

194,895

 

 

 

 

 

 

As of December 31, 2011

 

 

 

Useful Life

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Net Carrying
Amount

 

 

 

 

 

(In thousands)

 

Patents

 

3 to 10 years

 

$

28,643

 

$

(12,997

)

$

15,646

 

Customer contracts and contractual relationships

 

1 to 10 years

 

33,550

 

(7,148

)

26,402

 

Existing technology

 

3 to 7 years

 

159,350

 

(19,685

)

139,665

 

Non-compete agreements

 

3 years

 

400

 

(158

)

242

 

Intellectual property

 

4 years

 

10,384

 

(10,384

)

—

 

Total intangible assets

 

 

 

$

232,327

 

$

(50,372

)

$

181,955

 

 

Amortization expense for intangible assets for the three months ended March 31, 2012 and 2011 was $7.6 million and $2.0 million, respectively.

 

During the first quarter of 2012, the Company acquired Unity. As part of the acquisition, the Company acquired existing technology with a fair value of $19.3 million determined as of the acquisition date. Also during the first quarter of 2012, the Company acquired intangible assets which resulted in existing technology with a fair value of $3.7 million, of which $1.0 million will be due in the second quarter of 2012.

 

The estimated future amortization expense of intangible assets as of March 31, 2012 was as follows (amounts in thousands):

 

Years Ending December 31:

 

Amount

 

2012 (remaining 9 months)

 

$

27,545

 

2013

 

34,835

 

2014

 

30,694

 

2015

 

30,044

 

2016

 

29,089

 

Thereafter

 

42,688

 

 

 

$

194,895

 

 

Goodwill

 

The following table presents goodwill balances and adjustments to those balances for each of the reportable segments for the three months ended March 31, 2012 (in thousands):

 

 

 

December 31,

 

Addition to

 

March 31,

 

Reportable Segment:

 

2011

 

Goodwill (1)

 

2012

 

 

 

(In thousands)

 

SBG

 

$

4,454

 

$

15,451

 

$

19,905

 

All Other

 

110,694

 

8,070

 

118,764

 

Total

 

$

115,148

 

$

23,521

 

$

138,669

 

 

(1)         The addition to goodwill resulted from two business combinations in the first quarter of 2012. See Note 4, “Acquisitions” for further details.

 

No goodwill was impaired as of March 31, 2012 and December 31, 2011.