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Intangible Assets
12 Months Ended
Dec. 31, 2013
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible Assets
5. Intangible Assets

The Company’s amortizable purchased intangible assets resulting from its acquisition of Enfora are composed of (in thousands):

 

     Years ended December 31,  
     2013      2012  
     Gross      Accumulated
Amortization
    Accumulated
Impairment
    Net      Gross      Accumulated
Amortization
    Impairment     Net  

Developed technologies

   $ 26,000       $ (6,120   $ (19,547   $ 333       $ 26,000       $ (5,786   $ (19,547   $ 667   

Trade name

     12,800         (2,665     (8,582     1,553         12,800         (2,147     (8,582     2,071   

Other

     3,720         (1,967     (1,620     133         3,720         (1,923     (1,620     177   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total amortizable purchased intangible assets

   $ 42,520       $ (10,752   $ (29,749   $ 2,019       $ 42,520       $ (9,856   $ (29,749   $ 2,915   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

The following table presents details of the amortization of purchased intangible assets of Enfora included in the cost of net revenues and operating costs and expenses categories (in thousands):

 

     Years ended December 31,  
           2013                  2012        

Cost of net revenues

   $ 334       $ 1,623   

General and administrative expenses

     562         1,074   
  

 

 

    

 

 

 

Total amortization expense

   $ 896       $ 2,697   
  

 

 

    

 

 

 

 

The following table presents details of the amortization of existing amortizable purchased intangible assets of Enfora that is currently estimated to be expensed in the future (in thousands):

 

Fiscal year:

   Amount  

2014

   $ 895   

2015

     562   

2016

     562   
  

 

 

 

Total

   $ 2,019   
  

 

 

 

Additionally, at December 31, 2013 and 2012, the Company had net acquired software licenses of $112,000 and $248,000, respectively, net of accumulated amortization of $2.2 million and $2.1 million, respectively. The acquired software licenses represent rights to use certain software necessary for the development and commercial sale of the Company’s products.

The Company monitors its intangible and long-lived asset balances and conducts formal tests when impairment indicators are present (see Note 6 for a discussion of the impairment indicators). There was no impairment loss recorded for the year ended December 31, 2013. During the quarter ended March 31, 2012, the Company recorded an impairment loss of $22.8 million related to a decrease in the estimated fair values of the purchased intangible assets fair values. At September 30, 2012, the Company recorded a further preliminary impairment loss of $7.3 million related to the continued decrease in the estimated fair values of the purchased intangible assets. During the fourth quarter of 2012, the Company completed the impairment analysis and reduced the third quarter impairment by $300,000. The Company recorded $133,000 of impairment loss related to acquired software licenses during the year ended December 31, 2011.

Amortization expense relating to acquired software licenses was $113,000, $196,000 and $422,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Amortization expense related to licenses obtained for research purposes is recorded within research and development expense in the consolidated statements of operations. Amortization expense related to licenses obtained for commercial products is recorded in cost of net revenues in the consolidated statements of operations.

At December 31, 2013, the weighted average remaining useful life of the Company’s long-lived intangible assets including acquired software licenses is 2.1 years.