Goodwill and Intangible Assets, Net

3 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Changes in the carrying amount of goodwill were as follows:



(In thousands)
Balance at December 31, 2016	$	43,052
Foreign exchange effects	(4		)
Balance at March 31, 2017	$	43,048

Intangible Assets, Net

The components of intangible assets, net were as follows:



	March 31, 2017							December 31, 2016
(In thousands)	Gross ⁽¹⁾		Accumulated Amortization ⁽¹⁾			Net		Gross ⁽¹⁾		Accumulated Amortization ⁽¹⁾			Net
Distribution rights	$	302	$	(119	)	$	183	$	302	$	(119	)	$	183
Patents	11,345		(3,988		)	7,357		12,038		(4,775		)	7,263
Trademarks and trade names	2,396		(1,371		)	1,025		2,400		(1,310		)	1,090
Developed and core technology	12,578		(4,569		)	8,009		12,585		(4,068		)	8,517
Capitalized software development costs	142		(24		)	118		142		(5		)	137
Customer relationships	27,654		(17,011		)	10,643		27,703		(16,344		)	11,359
Total intangible assets, net	$	54,417	$	(27,082	)	$	27,335	$	55,170	$	(26,621	)	$	28,549


⁽¹⁾	This table excludes the gross value of fully amortized intangible assets totaling $11.2 million and $10.2 million at March 31, 2017 and December 31, 2016, respectively.

Amortization expense is recorded in selling, general and administrative expenses, except amortization expense related to capitalized software development costs which is recorded in cost of sales. Amortization expense by income statement caption was as follows:



	Three Months Ended March 31,
(In thousands)	2017		2016
Cost of sales	$	19	$	21
Selling, general and administrative expenses	1,581		1,533
Total amortization expense	$	1,600	$	1,554

Estimated future annual amortization expense related to our intangible assets at March 31, 2017, is as follows:



(In thousands)
2017 (remaining 9 months)	$	4,797
2018	6,364
2019	6,285
2020	5,196
2021	1,782
Thereafter	2,911
Total	$	27,335

- 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.

+ References + Details