Intangible Asset and Goodwill

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

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, 2013:



Reportable Segment:	December 31, 2012		Additions to Goodwill		Impairment Charge of Goodwill		March 31, 2013
	(In thousands)
MID	$	19,905	$	—	$	—	$	19,905
CTO	8,070		—		—		8,070
All Other	96,994		—		—		96,994
Total	$	124,969	$	—	$	—	$	124,969



	As of
	March 31, 2013
Reportable Segment:	Gross Carrying Amount		Accumulated Impairment Losses			Net Carrying Amount
	(In thousands)
MID	$	19,905	$	—		$	19,905
CTO	8,070		—			8,070
All Other	110,694		(13,700		)	96,994
Total	$	138,669	$	(13,700	)	$	124,969

Intangible Assets

The components of the Company’s intangible assets as of March 31, 2013 and December 31, 2012 were as follows:



		As of March 31, 2013
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(In thousands)
Existing technology	3 to 10 years	$	192,881	$	(63,466	)	$	129,415
Customer contracts and contractual relationships	1 to 10 years	32,650		(16,252		)	16,398
Non-compete agreements	3 years	300		(183		)	117
Total intangible assets		$	225,831	$	(79,901	)	$	145,930



		As of December 31, 2012
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(In thousands)
Existing technology	3 to 10 years	$	191,815	$	(57,240	)	$	134,575
Customer contracts and contractual relationships	1 to 10 years	32,650		(14,194		)	18,456
Non-compete agreements	3 years	300		(158		)	142
Total intangible assets		$	224,765	$	(71,592	)	$	153,173

The favorable contracts (included in customer contracts and contractual relationships) are acquired patent licensing agreements where the Company has no performance obligations. Cash received from these acquired favorable contracts reduce the favorable contract intangible asset. For the three months ended March 31, 2013 and 2012, the Company received $1.4 million and $2.4 million related to the favorable contracts, respectively. As of March 31, 2013 and December 31, 2012, the net balance of the favorable contract intangible assets was $3.4 million and $4.8 million, respectively.

Amortization expense for intangible assets for the three months ended March 31, 2013 and 2012 was $7.0 million and $7.6 million, respectively.

The estimated future amortization expense of intangible assets as of March 31, 2013 was as follows (amounts in thousands):



Years Ending December 31:	Amount
2013 (remaining 9 months)	$	24,166
2014	27,492
2015	26,841
2016	25,974
2017	24,500
Thereafter	16,957
	$	145,930

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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