XML 31 R18.htm IDEA: XBRL DOCUMENT
v3.23.1

INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended
--- | ---
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL The Company's intangible assets at December 31, 2022 and 2021 consisted of the following (in thousands):
December 31, 2022 | Weighted average amortization period (years) |  | Cost |  | Accumulated amortization |  | Net carrying value
Developed technology | 7.84 |  | $ | 340,380 |  |  | $ | 212,448 |  |  | $ | 127,932 |
Customer relationships | 11.86 |  | 268,140 |  |  | 106,385 |  |  | 161,755 |
Trade names | 3.88 |  | 5,000 |  |  | 4,658 |  |  | 342 |
Software licenses | 3.00 |  | 5,186 |  |  | 487 |  |  | 4,699 |
| 9.51 |  | $ | 618,706 |  |  | $ | 323,978 |  |  | $ | 294,728 |
December 31, 2021 | Weighted average amortization period (years) |  | Cost |  | Accumulated amortization |  | Net carrying value
In-process research and development | * |  | $ | 34,000 |  |  | $ | — |  |  | $ | 34,000 |
Developed technology | 7.93 |  | 306,380 |  |  | 181,393 |  |  | 124,987 |
Customer relationships | 11.86 |  | 268,140 |  |  | 77,653 |  |  | 190,487 |
Trade names | 3.88 |  | 5,000 |  |  | 3,744 |  |  | 1,256 |
Internal use software | 3.00 |  | 730 |  |  | 730 |  |  | — |
| 9.17 |  | $ | 614,250 |  |  | $ | 263,520 |  |  | $ | 350,730 |
* 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 and the Company begins to amortize the asset. In the fourth quarter of 2022, the Company reclassified an in-process research and development intangible asset to developed technology, as the associated products and features related to 5G technology became generally available. Estimated future amortization expense for the Company's intangible assets at December 31, 2022 was as follows (in thousands):
Years ending December 31, |
2023 | $ | 56,882 |
2024 | 50,717 |
2025 | 44,006 |
2026 | 38,965 |
2027 | 33,936 |
Thereafter | 70,222 |
| $ | 294,728 |
Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired. For the purpose of testing goodwill for impairment, all goodwill is assigned to a reporting unit, which may be either an operating segment or a portion of an operating segment. The Company determined in the fourth quarter of 2020 that it had two operating segments: Cloud and Edge, and IP Optical Networks, at which time it was determined that the goodwill assigned to these two segments was $224.9 million and $192.0 million, respectively. The Company's reporting units are its operating segments. Our annual testing for impairment of goodwill is completed as of October 1. Upon completion of the 2022 annual test for goodwill impairment, the Company determined that there was no impairment of goodwill in either of its reporting units. Based on the results of the 2021 impairment test, the Company determined that the carrying value of its IP Optical Networks segment exceeded its fair value and the amount of the impairment was $116.0 million. This impairment charge was recorded in the fourth quarter of 2021 and is reported separately in the Company's consolidated statement of operations. In the 2021 impairment test, the Company determined that there was no impairment of its Cloud and Edge segment. The changes in the carrying value of the Company's goodwill in the years ended December 31, 2022 and 2021 were as follows (in thousands):
| Cloud and Edge |  | IP Optical Networks |  | Total
Balance at January 1, 2021 (1) | $ | 224,896 |  |  | $ | 191,996 |  |  | $ | 416,892 |
Impairment of goodwill | — |  |  | (116,000) |  |  | (116,000) |
Balance at December 31, 2021 (1)(2) | 224,896 |  |  | 75,996 |  |  | 300,892 |
Activity | — |  |  | — |  |  | — |
Balance at December 31, 2022 (1)(2) | $ | 224,896 |  |  | $ | 75,996 |  |  | $ | 300,892 |
(1) Balance is presented net of accumulated impairment losses of $167.4 million for the Cloud and Edge segment. (2) Balance is presented net of an impairment loss of $116.0 million for the IP Optical Networks segment. The components of goodwill at December 31, 2021 and 2022 were as follows (in thousands):
| Cloud and Edge |  | IP Optical Networks |  | Total
Balance at December 31, 2021 |  |  |  |  |
Goodwill | $ | 392,302 |  |  | $ | 191,996 |  |  | $ | 584,298 |
Accumulated impairment losses | (167,406) |  |  | (116,000) |  |  | (283,406) |
| 224,896 |  |  | 75,996 |  |  | 300,892 |
Balance at December 31, 2022 |  |  |  |  |
Goodwill | $ | 392,302 |  |  | $ | 191,996 |  |  | $ | 584,298 |
Accumulated impairment losses | (167,406) |  |  | (116,000) |  |  | (283,406) |
| $ | 224,896 |  |  | $ | 75,996 |  |  | $ | 300,892 |

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 goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration