Goodwill and Acquired Intangible Assets

12 Months Ended

Dec. 31, 2016

11. GOODWILL AND ACQUIRED INTANGIBLE ASSETS

Intangible assets: The intangible assets acquired from the Company’s acquisition of FCI and Centronix in 2007 and Shannon Systems in 2015 are as follows:


	December 31
	2015									2016
	US$									US$
	Cost		Accumulated Impairment		Accumulated Amortization			Net Carrying Amount		Cost		Accumulated Impairment		Accumulated Amortization			Net Carrying Amount
Developed technology		8,381		—		(1,051	)		7,330		8,381		—		(3,154	)		5,227

No impairment losses were recognized in 2014, 2015 and 2016. Amortization expense of acquisition-related intangible assets for the years ended December 31, 2014, 2015 and 2016 was nil, US$1,051 thousand and US$2,103 thousand, respectively.

Goodwill: Goodwill is not amortized, but instead is reviewed and tested for impairment at least annually and whenever events or circumstances occur which indicate that goodwill might be impaired. Impairment of goodwill is tested at the Company’s reporting unit level by comparing the carrying amount, including goodwill, to the fair value. In performing the analysis, the Company uses the best information available, including reasonable and supportable assumptions and projections. If the carrying amount of the reporting unit exceeds its implied fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. The Company performed its annual impairment test on November 30. The goodwill that resulted from the Company’s acquisition of FCI and Centronix in 2007 and purchased of BTL’s assets in 2011 was US$66,300 thousand. The Company’s fiscal 2014, 2015 and 2016 impairment tests concluded there was no impairment. The goodwill that resulted from the Company’s acquisition of Shannon Systems in 2015 was US$33,204 thousand. Total goodwill was US$68,660 thousand and US$68,656 thousand as of December 31, 2015 and 2016, respectively.


	December 31
	2015										2016
	US$										US$
	Cost		Accumulated Impairment			Foreign Currency Adjustment			Net Carrying Amount		Cost		Accumulated Impairment			Foreign Currency Adjustment			Net Carrying Amount
Goodwill		99,504		(30,808	)		(36	)		68,660		99,504		(30,808	)		(40	)		68,656

- 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.

+ References + Details