Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Intangible Assets

The change in the carrying amount of goodwill for the years ended December 31, 2018 and 2017, was as follows (in thousands):



Balance as of December 31, 2016	$	20,096
Goodwill acquired	17,052
Foreign currency translation adjustments	1,310
Balance as of December 31, 2017	38,458
Purchase accounting adjustments	252
Foreign currency translation adjustments	(479		)
Balance as of December 31, 2018	$	38,231

The goodwill balance related to PROS France is denominated in Euro and the goodwill balance related to Vayant is denominated in the U.S. dollar.

Intangible assets consisted of the following as of December 31, (in thousands):



		December 31, 2018
	Weighted average useful life (years)	Gross Carrying Amount		Accumulated Amortization*		Net Carrying Amount
Developed technology	7	$	25,584	$	13,890	$	11,694
Maintenance relationships	8	3,485		2,488		997
Customer relationships	6	11,802		6,884		4,918
Acquired technology	2	1,925		180		1,745
Total		$	42,796	$	23,442	$	19,354

*Cumulative foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities, decreased total intangible assets by approximately $0.2 million as of December 31, 2018.



		December 31, 2017
	Weighted average useful life (years)	Gross Carrying Amount		Accumulated Amortization*		Net Carrying Amount
Developed technology	7	$	26,023	$	9,560	$	16,463
Maintenance relationships	8	3,565		2,207		1,358
Customer relationships	6	11,840		4,482		7,358
Acquired technology	3	1,750		—		1,750
Total		$	43,178	$	16,249	$	26,929

*Cumulative foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities, increased total intangible assets by approximately $0.7 million as of December 31, 2017.

Customer relationships are amortized over five or eight years.

In December 2016, the Company purchased a technology-based intangible asset in connection with the equity securities investment made during the same period. The Company estimates that the intangible will be amortized over approximately a 2-year period. During the second half of 2017 and 2018, the Company purchased an additional technology-based intangible asset which is expected to be amortized over approximately a 1-year period.

Intangible asset amortization expense for the years ended December 31, 2018, 2017 and 2016 was $7.6 million, $5.2 million and $3.0 million, respectively. As of December 31, 2018, the expected future amortization expense for the acquired intangible assets for each of the five succeeding years and thereafter was as follows (in thousands):



Year Ending December 31,	Amount
2019	$	6,575
2020	5,791
2021	3,021
2022	1,921
2023	1,292
2024 and thereafter	754
Total amortization expense	$	19,354

- 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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