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Goodwill and Identified Intangible Assets | 6 Months Ended
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Jun. 28, 2019
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 Access. 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. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies. No impairment indicators were identified as of June 28, 2019. The changes in the carrying amount of goodwill for the six months ended June 28, 2019 were as follows (in thousands):
| Video |  | Cable Access |  | Total
Balance as of December 31, 2018 | $ | 179,839 |  |  | $ | 60,779 |  |  | $ | 240,618 |
Foreign currency translation adjustment, net | (282 | ) |  | (1 | ) |  | (283 | )
Balance as of June 28, 2019 | $ | 179,557 |  |  | $ | 60,778 |  |  | $ | 240,335 |
Intangible Assets, Net The following is a summary of intangible assets, net (in thousands):
|  |  | June 28, 2019 |  | December 31, 2018
| Weighted Average Remaining Life (Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Developed core technology | 0.7 |  | $ | 31,708 |  |  | $ | (28,167 | ) |  | $ | 3,541 |  |  | $ | 31,707 |  |  | $ | (25,576 | ) |  | $ | 6,131 |
Customer relationships/contracts | 1.7 |  | 44,628 |  |  | (39,632 | ) |  | 4,996 |  |  | 44,650 |  |  | (38,146 | ) |  | 6,504 |
Trademarks and trade names | 0.7 |  | 618 |  |  | (515 | ) |  | 103 |  |  | 623 |  |  | (441 | ) |  | 182 |
Maintenance agreements and related relationships | n/a |  | 5,500 |  |  | (5,500 | ) |  | — |  |  | 5,500 |  |  | (5,500 | ) |  | — |
Order backlog | n/a |  | 3,104 |  |  | (3,104 | ) |  | — |  |  | 3,112 |  |  | (3,112 | ) |  | — |
Total identifiable intangibles, net |  |  | $ | 85,558 |  |  | $ | (76,918 | ) |  | $ | 8,640 |  |  | $ | 85,592 |  |  | $ | (72,775 | ) |  | $ | 12,817 |
Amortization expense for the identifiable purchased intangible assets for the three and six months ended June 28, 2019 and June 29, 2018 was allocated as follows (in thousands):
| Three months ended |  | Six months ended
| June 28, 2019 |  | June 29, 2018 |  | June 28, 2019 |  | June 29, 2018
Included in cost of revenue | $ | 1,295 |  |  | $ | 1,295 |  |  | $ | 2,590 |  |  | $ | 2,590 |
Included in operating expenses | 784 |  |  | 800 |  |  | 1,572 |  |  | 1,604 |
Total amortization expense | $ | 2,079 |  |  | $ | 2,095 |  |  | $ | 4,162 |  |  | $ | 4,194 |
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, |  |  |  |  |
2019 (remaining six months) | $ | 2,590 |  |  | $ | 1,576 |  |  | $ | 4,166 |
2020 | 951 |  |  | 3,023 |  |  | 3,974 |
2021 | — |  |  | 500 |  |  | 500 |
Total future amortization expense | $ | 3,541 |  |  | $ | 5,099 |  |  | $ | 8,640 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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