Goodwill, Purchased Intangibles, and Software Development Costs

3 Months Ended

Mar. 31, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill, Purchased Intangibles, and Software Development Costs

5. GOODWILL, PURCHASED INTANGIBLES, AND SOFTWARE DEVELOPMENT COSTS

Goodwill

The following table presents the changes to the Company’s goodwill by segment during the three months ended March 31, 2016 (in thousands):

	Americas		EMEA		APAC		Total
Balance at December 31, 2015	$	308,159	$	101,882	$	148,734	$	558,775
Foreign currency translation		—		—		138		138
Balance at March 31, 2016	$	308,159	$	101,882	$	148,872	$	558,913

Purchased Intangible Assets and Software Development Costs

The following table presents details of the Company’s total purchased intangible assets and capitalized software development costs for products to be sold as of the following periods (in thousands):

	March 31, 2016							December 31, 2015
	Gross Value		Accumulated Amortization & Impairment			Net Value		Gross Value		Accumulated Amortization & Impairment			Net Value
Core and developed technology	$	81,178	$	(81,045	)	$	133	$	81,178	$	(80,945	)	$	233
Customer and partner relationships		79,525		(68,811	)		10,714		79,525		(66,742	)		12,783
Non-compete agreements		1,800		(1,800	)		—		1,800		(1,700	)		100
Trade name		3,400		(3,400	)		—		3,400		(3,369	)		31
Finite-lived intangible assets		165,903		(155,056	)		10,847		165,903		(152,756	)		13,147
Indefinite-lived trade name		918		—			918		918		—			918
Total acquired intangible assets	$	166,821	$	(155,056	)	$	11,765	$	166,821	$	(152,756	)	$	14,065
Capitalized software development costs for products to be sold	$	13,836	$	(6,019	)	$	7,817	$	12,993	$	(5,002	)	$	7,991

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.

The following table summarizes the amortization expenses recorded in the following periods (in thousands):

	Three Months Ended
	March 31, 2016		March 31, 2015
Amortization of purchased intangibles in revenues	$	—	$	19
Amortization of purchased intangibles in cost of product revenues		100		657
Amortization of purchased intangibles in operating expenses		2,200		2,417
Total amortization expenses of purchased intangibles	$	2,300	$	3,093

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

The estimated future amortization expense as of March 31, 2016 is as follows (in thousands):

Year ending December 31,	Amount
Remainder of 2016	$	6,178
2017		4,669
Total	$	10,847

In the three months ended March 31, 2016 and 2015, the Company capitalized approximately $0.8 million and $0.7 million of software development costs, respectively, for internally developed software products to be marketed and sold to customers after the point that technological feasibility has been reached and before the products are available for general release. The capitalized costs are being amortized over the estimated product useful life, generally three years, beginning when the products are available for general release. Management expects that the capitalized software development costs are recoverable from future gross profits generated by these products and services.

- 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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