XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Goodwill and Identified Intangible Assets | 6 Months Ended
--- | ---
Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Identified Intangible Assets | GOODWILL AND IDENTIFIED INTANGIBLE ASSETS Goodwill Goodwill represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. The Company has two reporting units, Video and Cable Edge. The Company tests for goodwill impairment at the reporting unit level on an annual basis, or more frequently, if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company’s annual goodwill impairment test is performed in the fiscal fourth quarter, with a testing date at the end of October. During 2016, the Company recorded goodwill of $41.7 million for the TVN acquisition. Goodwill from the TVN acquisition is assigned to the Video reporting unit. The changes in the carrying amount of goodwill by reportable segments for the six months ended June 30, 2017 were as follows (in thousands):
| Video |  | Cable Edge |  | Total
Balance as of December 31, 2016 | $ | 176,519 |  |  | $ | 60,760 |  |  | $ | 237,279 |
Foreign currency translation adjustment | 3,261 |  |  | 30 |  |  | 3,291 |
Balance as of June 30, 2017 | $ | 179,780 |  |  | $ | 60,790 |  |  | $ | 240,570 |
Application of the goodwill impairment test requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows and determining appropriate discount rates, growth rates, an appropriate control premium and other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit which could trigger impairment. If the Company’s assumptions and related estimates change in the future, or if the Company’s reporting structure changes or other events and circumstances change (e.g. such as a sustained decrease in the Company’s stock price), the Company may be required to record impairment charges in future periods. Any impairment charges that the Company may take in the future could be material to its results of operations and financial condition. The Company performed its annual goodwill impairment review at October 31, 2016. Based on the impairment test performed, management concluded that goodwill was not impaired as the Video and Cable Edge reporting units had estimated fair values in excess of their carrying value by approximately 67% and 123%, respectively. The Company has not recorded any impairment charges related to goodwill for any prior periods. Intangible Assets The following is a summary of intangible assets (in thousands):
|  |  | June 30, 2017 |  | December 31, 2016
| Weighted Average Remaining Life (Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Developed core technology | 2.7 |  | $ | 31,708 |  |  | $ | (17,807 | ) |  | $ | 13,901 |  |  | $ | 31,707 |  |  | $ | (15,216 | ) |  | $ | 16,491 |
Customer relationships/contracts | 3.7 |  | 44,643 |  |  | (33,641 | ) |  | 11,002 |  |  | 44,384 |  |  | (32,098 | ) |  | 12,286 |
Trademarks and trade names | 2.7 |  | 621 |  |  | (207 | ) |  | 414 |  |  | 573 |  |  | (119 | ) |  | 454 |
Maintenance agreements and related relationships | N/A |  | 5,500 |  |  | (5,500 | ) |  | — |  |  | 5,500 |  |  | (5,500 | ) |  | — |
Order Backlog | N/A |  | 3,011 |  |  | (3,011 | ) |  | — |  |  | 3,011 |  |  | (3,011 | ) |  | — |
Total identifiable intangibles |  |  | $ | 85,483 |  |  | $ | (60,166 | ) |  | $ | 25,317 |  |  | $ | 85,175 |  |  | $ | (55,944 | ) |  | $ | 29,231 |
Amortization expense for the identifiable purchased intangible assets for the three and six months ended June 30, 2017 and July 1, 2016 was allocated as follows (in thousands):
| Three months ended |  | Six months ended
| June 30, 2017 |  | July 1, 2016 |  | June 30, 2017 |  | July 1, 2016
Included in cost of revenue | $ | 1,295 |  |  | $ | 1,307 |  |  | $ | 2,590 |  |  | $ | 1,725 |
Included in operating expenses | 780 |  |  | 4,232 |  |  | 1,554 |  |  | 6,597 |
Total amortization expense | $ | 2,075 |  |  | $ | 5,539 |  |  | $ | 4,144 |  |  | $ | 8,322 |
The estimated future amortization expense of purchased intangible assets with definite lives is as follows (in thousands):
| Cost of Revenue |  | Operating Expenses |  | Total
Year ended December 31, |  |  |  |  |
2017 (remaining six months) | $ | 2,590 |  |  | $ | 1,578 |  |  | $ | 4,168 |
2018 | 5,180 |  |  | 3,156 |  |  | 8,336 |
2019 | 5,180 |  |  | 3,156 |  |  | 8,336 |
2020 | 951 |  |  | 3,026 |  |  | 3,977 |
2021 | — |  |  | 500 |  |  | 500 |
Total future amortization expense | $ | 13,901 |  |  | $ | 11,416 |  |  | $ | 25,317 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration