XML 32 R14.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Patents | 12 Months Ended
--- | ---
Dec. 31, 2016
Patents [Abstract] |
Patents | Acacia’s only identifiable intangible assets are patents and patent rights, with estimated remaining economic useful lives ranging from one to seven years. For all periods presented, all of Acacia’s identifiable intangible assets were subject to amortization. The gross carrying amounts and accumulated amortization related to investments in intangible assets as of December 31, 2016 and 2015 are as follows (in thousands):
|  | 2016 |  | 2015
Gross carrying amount - patents |  | $ | 444,362 |  |  | $ | 444,137 |
Accumulated amortization - patents(1) |  | (358,043 | ) |  | (281,495 | )
Patents, net |  | $ | 86,319 |  |  | $ | 162,642 |
(1) Includes patent impairment charges for the applicable periods. The weighted-average remaining estimated economic useful life of Acacia’s patents and patent rights is 5 years. Scheduled annual aggregate amortization expense is estimated to be $22,333,000 in 2017, $21,256,000 in 2018, $19,150,000 in 2019, $6,707,000 in 2020, $5,421,000 in 2021 and $11,452,000 thereafter. For the years ended December 31, 2016, 2015 and 2014, Acacia paid patent investment costs totaling $1,225,000, $19,504,000 and $42,746,000, respectively. The patents have initial estimated economic useful lives ranging from two to ten years. Included in net additions to capitalized patent costs during the year ended December 31, 2015 and 2014 are accrued patent investment costs totaling $1,000,000 and $16,700,000, respectively, which are amortized over the estimated economic useful life of the related patents. During the periods presented, certain operating subsidiaries recovered up-front patent portfolio advances from applicable net licensing proceeds prior to the scheduled amortization of such up-front patent portfolio advances, resulting in the acceleration of amortization expense for the applicable patent-related assets. For the years ended December 31, 2016 and 2014, accelerated amortization expense related to the recovery of up-front patent portfolio advances totaled $225,000 and $1,247,000, respectively. For the year ended December 31, 2015, there was no accelerated amortization expense. For the years ended December 31, 2015 and 2014, pursuant to the terms of the respective inventor agreements, certain Acacia operating subsidiaries elected to terminate or sell their rights to patent portfolios, resulting in the acceleration of amortization expense for the patent-related assets totaling $380,000 and $2,702,000, respectively. For the year ended December 31, 2016, there were no terminations or sales of patent portfolios. Acacia recorded impairment of patent-related intangible asset charges totaling $42,340,000, $74,731,000 and $3,497,000 for the years ended December 31, 2016, 2015 and 2014, respectively. The impairment charges related to impairments of patent portfolios due to a reduction in expected estimated future net cash flows and certain patent portfolios that management determined it would no longer allocate future resources to in connection with the licensing and enforcement of such portfolios, due primarily to adverse litigation outcomes, potential prior art related complexities and/or the overall determination that future resources would be allocated to other licensing and enforcement programs with higher potential return profiles. In December 2015, Acacia's subsidiary Adaptix, Inc. received a jury verdict in its case against Alcatel Lucent USA, Inc., and others. The jury returned a verdict that the asserted claims of the patent at issue were invalid and non-infringed. The Adaptix trial loss resulted in a reduction in estimated cash flows for the Adaptix portfolio expected to be realized from future licensing and enforcement activities, leading to partial impairment charges on the portfolio in the fourth quarter of 2015. Patent impairment charges included the impairment of the remaining carrying value for the Adapitx portfolio in the second quarter of 2016. In addition, for the year ended December 31, 2015 analysis, management considered the impact of the fourth quarter 2015 adverse trial outcomes on its estimates of future cash flows that could be realized from future licensing and enforcement activities for other patent portfolios. Estimates of future cash flows for these portfolios were reduced in part in connection with the Company's assessment of probabilities of realization given the recent adverse trial outcomes. Additionally, patent impairment charges include the carrying value of other patent portfolios for which, in 2015, the Company experienced adverse litigation or trial outcomes, leading to a reduction in or elimination of expected future cash flows. In addition, headcount reductions and internal staff optimization efforts led to changes with respect to which patent portfolios the Company intends to allocate licensing and enforcement resources to in future periods. As such, certain portfolio programs were selected for termination due to a decision to no longer pursue or allocate resources, resulting in a write-off any remaining carrying value in the fourth quarter of 2015. The impairment charges for the periods presented consisted of the excess of the asset’s carrying value over its estimated fair value. For the years ended December 31, 2016, 2015 and 2014, capitalized patent costs, accumulated amortization, and sales proceeds related to patent-related sales and disposals are as follows (in thousands):
|  | 2016 |  | 2015 |  | 2014
Capitalized patent costs |  | $ | — |  |  | $ | 500 |  |  | $ | 3,000 |
Accumulated amortization |  | — |  |  | 120 |  |  | 298 |
Sales proceeds |  | — |  |  | 750 |  |  | 3,500 |

X
- Definition Patents [Abstract] + References No definition available. + Details
Name: | actg_PatentsAbstract
Namespace Prefix: | actg_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: 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 2: 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 3: 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 + Details
Name: | us-gaap_IntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration