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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2016
Goodwill and Intangible Assets |
Goodwill and Intangible Assets | Note 6 — Goodwill and Intangible Assets Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. The following table presents the changes in goodwill balances during the years indicated:
|  | Gross carrying |  | Accumulated |  |  |
|  |  |  | amount |  |  |  | impairment |  |  |  | Net amount |
|  |  |  | (in thousands) |  |  |
Balance at December 31, 2014 |  | $ | 238,158 |  | $ | 123,199 |  | $ | 114,959 |
Purchase price adjustments |  | (51 | ) | — |  | (51 | )
Balance at December 31, 2015 and 2016 |  | $ | 238,107 |  | $ | 123,199 |  | $ | 114,908 |
The Company performed its annual goodwill impairment test during the year ended December 31, 2016. The fair value of the Company’s reporting unit exceeded the carrying amount and therefore goodwill was not impaired. In the future, a significant decline in the market price of the Company’s common stock could indicate a decline in the fair value of the Company’s reporting unit such that goodwill becomes impaired. During 2014, the Company successfully demonstrated its FAST-ALD technology for flexible OLED encapsulation. But, subsequent to the Company’s annual goodwill impairment test in 2014, the incumbent deposition technology had progressed to satisfy current market requirements, which required an additional impairment test to be performed in the fourth quarter of 2014. After estimating the fair value of significant tangible and intangible long-lived assets related to the Atomic Layer Deposition (“ALD”) business, the Company recorded non-cash impairment charges of $28.0 million related to goodwill and $25.9 million related to other long-lived assets, including $17.4 million related to customer relationships, $4.8 million related to in-process research and development, and $3.6 million related to certain tangible assets. During 2016, the Company decided to further significantly reduce future investments in its ALD technology development and, as a result, recorded non-cash impairment charges of its remaining ALD assets, including $54.3 million for the full impairment of the intangible purchased ALD technology. The impairment charges were based on projected cash flows that required the use of unobservable inputs. The components of purchased intangible assets were as follows:
|  |  |  |  |  | December 31, 2016 |  |  |  | December 31, 2015 |
|  | Weighted |  |  |  |  |  |  |  | Accumulated |  |  |  |  |  |  |  |  |  |  |  | Accumulated |  |  |  |  |
|  | Average Remaining |  |  |  | Gross |  |  |  | Amortization |  |  |  |  |  |  |  | Gross |  |  |  | Amortization |  |  |  |  |
|  | Amortization |  |  |  | Carrying |  |  |  | and |  |  |  | Net |  |  |  | Carrying |  |  |  | and |  |  |  | Net |
|  | Period |  |  |  | Amount |  |  |  | Impairment |  |  |  | Amount |  |  |  | Amount |  |  |  | Impairment |  |  |  | Amount |
|  | (in years) |  | (in thousands) |
Technology |  | 7.3 |  | $ | 149,198 |  | $ | 113,904 |  | $ | 35,294 |  | $ | 222,358 |  | $ | 120,496 |  | $ | 101,862 |
Customer relationships |  | 11.9 |  | 47,885 |  | 28,659 |  | 19,226 |  | 47,885 |  | 22,470 |  | 25,415 |
Trademarks and tradenames |  | 4.3 |  | 2,590 |  | 1,948 |  | 642 |  | 2,730 |  | 1,937 |  | 793 |
Indefinite-lived trademark |  | — |  | 2,900 |  | — |  | 2,900 |  | 2,900 |  | — |  | 2,900 |
Other |  | 2.9 |  | 2,026 |  | 1,710 |  | 316 |  | 6,241 |  | 5,537 |  | 704 |
Total |  | 8.9 |  | $ | 204,599 |  | $ | 146,221 |  | $ | 58,378 |  | $ | 282,114 |  | $ | 150,440 |  | $ | 131,674 |
Other intangible assets primarily consist of patents, licenses, customer backlog, and non-compete agreements. Based on the intangible assets recorded at December 31, 2016, and assuming no subsequent additions to or impairment of the underlying assets, the remaining estimated annual amortization expense is expected to be as follows:
|  |  |  | Amortization |
|  | (in thousands) |
2017 |  | $ | 11,470 |
2018 |  | 9,893 |
2019 |  | 8,608 |
2020 |  | 7,530 |
2021 |  | 5,491 |
Thereafter |  | 12,486 |
Total |  | $ | 55,478 |

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- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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