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INTANGIBLE ASSETS AND GOODWILL
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL

The Company's intangible assets at December 31, 2018 and 2017 consisted of the following (in thousands):

December 31, 2018
Weighted average amortization period
(years)
 
Cost
 
Accumulated
amortization
 
Net
carrying value
In-process research and development
*
 
$
5,600

 
$

 
$
5,600

Developed technology
6.91
 
182,880

 
63,187

 
119,693

Customer relationships
9.44
 
146,940

 
22,218

 
124,722

Trade names
5.20
 
2,000

 
624

 
1,376

Internal use software
3.00
 
730

 
730

 

 
7.88
 
$
338,150

 
$
86,759

 
$
251,391



December 31, 2017
Weighted average amortization period
(years)
 
Cost
 
Accumulated
amortization
 
Net
carrying value
In-process research and development
*
 
$
5,600

 
$

 
$
5,600

Developed technology
6.90
 
153,380

 
24,211

 
129,169

Customer relationships
9.32
 
120,840

 
12,015

 
108,825

Trade names
3.00
 
900

 
80

 
820

Internal use software
3.00
 
730

 
730

 

 
7.77
 
$
281,450

 
$
37,036

 
$
244,414


* An in-process research and development intangible asset has an indefinite life until the product is generally available, at which time such asset is typically reclassified to developed technology.

Amortization expense for intangible assets for the years ended December 31, 2018, 2017 and 2016 was as follows (in thousands):
 
Year ended December 31,
 
Statement of operations classification
 
2018
 
2017
 
2016
 
Developed technology
$
38,976

 
$
18,358

 
$
6,038

 
Cost of revenue - product
Customer relationships
10,203

 
4,145

 
1,462

 
Sales and marketing
Trade names
544

 
80

 

 
Sales and marketing
 
$
49,723

 
$
22,583

 
$
7,500

 
 



In connection with the preparation of its financial statements for the fourth quarter of 2017, the Company reviewed its intangible assets and other long-lived assets for impairment indicators. The Company determined that a triggering event had occurred relative to one of its developed technology intangible assets that had been previously acquired. During 2017, the Company discontinued its ongoing development of this technology and determined that there were no alternative uses of the technology within either its existing or future product lines. As a result, the Company recorded an impairment charge of $5.5 million to write down the carrying value of the asset to zero. This expense is included as a component of Cost of revenue - product in the table above and in the Company's consolidated statements of operations for the year ended December 31, 2017.

Estimated future amortization expense for the Company's intangible assets at December 31, 2018 was as follows (in thousands):
Years ending December 31,
 
2019
$
47,411

2020
46,552

2021
40,571

2022
34,156

2023
26,756

Thereafter
55,945

 
$
251,391




Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired. The changes in the carrying value of the Company's goodwill in the years ended December 31, 2018 and 2017 were as follows (in thousands):
 
Year ended December 31,
 
2018
 
2017
Balance at January 1
 
 
 
  Goodwill
$
338,822

 
$
52,499

  Accumulated impairment losses
(3,106
)
 
(3,106
)
 
335,716

 
49,393

Acquisition of Edgewater
48,053

 

Acquisition of GENBAND

 
285,825

Acquisition of Taqua and subsequent purchase accounting adjustments

 
498

Write-off of goodwill attributable to dissolved subsidiary
(114
)
 

Balance at December 31
$
383,655

 
$
335,716