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Goodwill and Intangible Assets, Net | 12 Months Ended
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Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill Changes in the carrying amount of goodwill were as follows:
(In thousands) |
Balance at December 31, 2015 | $ | 43,116 |
Foreign exchange effects | (64 | )
Balance at December 31, 2016 | 43,052 |
Goodwill acquired during the period (1) | 5,494 |
Foreign exchange effects | 105 |
Balance at December 31, 2017 | $ | 48,651 |
(1) | During 2017, we recognized $5.5 million of goodwill related to the Residential Control Systems, Inc. acquisition. Refer to Note 22 for further information about this acquisition.
We conducted annual goodwill impairment reviews on December 31, 2017, 2016, and 2015 utilizing significant unobservable inputs (level 3). Based on the analysis performed, we determined that our goodwill was not impaired. Intangible Assets, Net The components of intangible assets, net were as follows:
| December 31,
| 2017 |  | 2016
(In thousands) | Gross (1) |  | Accumulated Amortization (1) |  | Net (1) |  | Gross (1) |  | Accumulated Amortization (1) |  | Net (1)
Distribution rights (10 years) | $ | 344 |  |  | $ | (165 | ) |  | $ | 179 |  |  | $ | 302 |  |  | $ | (119 | ) |  | $ | 183 |
Patents (10 years) | 13,250 |  |  | (5,310 | ) |  | 7,940 |  |  | 12,038 |  |  | (4,775 | ) |  | 7,263 |
Trademarks and trade names (10 years) (2) | 2,786 |  |  | (1,594 | ) |  | 1,192 |  |  | 2,400 |  |  | (1,310 | ) |  | 1,090 |
Developed and core technology (5-15 years) | 12,560 |  |  | (6,071 | ) |  | 6,489 |  |  | 12,585 |  |  | (4,068 | ) |  | 8,517 |
Capitalized software development costs (2 years) | 142 |  |  | (77 | ) |  | 65 |  |  | 142 |  |  | (5 | ) |  | 137 |
Customer relationships (10-15 years) (2) | 32,534 |  |  | (19,395 | ) |  | 13,139 |  |  | 27,703 |  |  | (16,344 | ) |  | 11,359 |
Order Backlog (1 year) (2) | 150 |  |  | (113 | ) |  | 37 |  |  | — |  |  | — |  |  | — |
Total intangible assets, net | $ | 61,766 |  |  | $ | (32,725 | ) |  | $ | 29,041 |  |  | $ | 55,170 |  |  | $ | (26,621 | ) |  | $ | 28,549 |
(1) | This table excludes the gross value of fully amortized intangible assets totaling $6.0 million and $10.2 million on December 31, 2017 and 2016, respectively.
(2) | During the second quarter of 2017, we purchased a trade name valued at $0.4 million, which is being amortized ratably over eight years; customer relationships valued at $5.0 million, which are being amortized ratably over 10 years; and order backlog valued at $0.2 million, which is being amortized ratably over one year. Refer to Note 22 for further information regarding our purchase of these intangible assets.
Amortization expense is recorded in selling, general and administrative expenses, except amortization expense related to capitalized software development costs and order backlog, which is recorded in cost of sales. Amortization expense by statement of operations caption was as follows:
| Year Ended December 31,
(In thousands) | 2017 |  | 2016 |  | 2015
Cost of sales | $ | 184 |  |  | $ | 76 |  |  | $ | 123 |
Selling, general and administrative expenses | 6,772 |  |  | 6,198 |  |  | 4,719 |
Total amortization expense | $ | 6,956 |  |  | $ | 6,274 |  |  | $ | 4,842 |
Estimated future annual amortization expense related to our intangible assets at December 31, 2017, is as follows:
(In thousands) |
2018 | $ | 7,275 |
2019 | 7,070 |
2020 | 5,925 |
2021 | 2,418 |
2022 | 2,307 |
Thereafter | 4,046 |
Total | $ | 29,041 |
The remaining weighted average amortization period of our intangible assets is 6.8 years.

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- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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