Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Note 8 - Goodwill and Other Intangible Assets

Goodwill

Changes in goodwill as of December 31, 2016 are as follows:

	December 31
	2015		2016
	US$ thousands

Beginning of the year		12,242		25,561

Business acquisition (see Note 3A)		13,319		-
End of the year		25,561		25,561

Other intangible assets

Net other intangible assets as of December 31, 2016 are as follows:

		December 31
		2015		2016
	Useful life	US$ thousands
Original cost:
Intellectual property	3		200		200
Current technology	3		3,833		3,833
Customer relationships	3		1,937		1,937
Backlog	0.4		487		487
			6,457		6,457
Accumulated amortization:
Intellectual property			154		200
Current technology			654		1,930
Customer relationships			272		916
Backlog			213		487
			1,293		3,533

Other intangible assets, Net:
Intellectual property			46		-
Current technology			3,179		1,903
Customer relationships			1,665		1,021
Backlog			274		-
			5,164		2,924

Amortization expense for the years ended December 31, 2014, 2015 and 2016 were US$ 105 thousand, US$ 1,168 thousand and US$ 2,240 thousand, respectively.

- 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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