Goodwill and Purchased Intangibles

9 Months Ended

Sep. 30, 2013

6. GOODWILL AND PURCHASED INTANGIBLES

Goodwill

The following table presents details of the Company’s goodwill by segment during the nine months ended September 30, 2013 (in thousands):

	Americas		EMEA		APAC		Total
Balance at December 31, 2012	$	302,768	$	101,882	$	149,169	$	553,819
Sentri acquisition		5,490		—		—		5,490
Foreign currency translation		—		—		154		154
Balance at September 30, 2013	$	308,258	$	101,882	$	149,323	$	559,463

Purchased intangible assets

The following table presents details of the Company’s total purchased intangible assets as of September 30, 2013 and December 31, 2012 (in thousands):

	September 30, 2013
	Gross Value		Accumulated Amortization & Impairment			Net Value		Gross Value		Accumulated Amortization & Impairment				Net Value
Core and developed technology	$	81,178	$	(71,334	)	$	9,844	$	81,178		$	(67,514	)		$	13,664
Customer and partner relationships		79,525		(46,272	)		33,253		79,025			(39,578	)			39,447
Non-compete agreements		1,800		(350	)		1,450		—			—				—
Trade name		3,400		(3,054	)		346		3,400			(2,746	)			654
Other		4,462		(4,325	)		137		4,462			(4,162	)			300
Finite-lived intangible assets		170,365		(125,335	)		45,030		168,065			(114,000	)			54,065
Indefinite life trade name		918		—			918		918			—				918
Total acquired intangible assets		171,283		(125,335	)		45,948		168,983			(114,000	)			54,983

Purchased intangibles include a purchased trade name of $0.9 million with an indefinite life as the Company expects to generate cash flows related to this asset indefinitely. Consequently, this trade name is not amortized but is reviewed for impairment annually or sooner when indicators of potential impairment exist.

The following table summarizes the amortization expenses recorded in the three and nine months ended September 30, 2013 and 2012 (in thousands):

	Three Months Ended					Nine Months Ended
	September 30, 2013		September 30, 2012		September 30, 2013				September 30, 2012
Amortization of purchased intangibles in cost of product revenues	$	1,248	$	1,909	$		3,744	$		5,726
Amortization of purchased intangibles in operating expenses		2,487		2,512			7,535			7,318
Total amortization expenses of purchased intangibles	$	3,735	$	4,421	$		11,279	$		13,044

Amortization of purchased intangibles is not allocated to the Company’s segments.

The estimated future amortization expense as of September 30, 2013 is as follows (in thousands):

Year ending December 31,	Amount
Remainder of 2013	$	3,724
2014		14,510
2015		12,226
2016		9,880
2017		4,690
Total	$	45,030

- 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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