Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill and changes in the carrying amount of goodwill were as follows:



(In thousands)
Balance at December 31, 2012	$	30,890
Foreign currency	71
Balance at September 30, 2013	$	30,961

Intangible Assets, Net

The components of intangible assets, net were as follows:



	September 30, 2013							December 31, 2012
(In thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Carrying amount ⁽¹⁾:
Distribution rights	$	389	$	(52	)	$	337	$	378	$	(50	)	$	328
Patents	8,695		(4,175		)	4,520		8,113		(3,847		)	4,266
Trademark and trade names	2,840		(1,339		)	1,501		2,841		(1,127		)	1,714
Developed and core technology	3,505		(1,080		)	2,425		3,507		(906		)	2,601
Capitalized software development costs	297		(98		)	199		1,276		(913		)	363
Customer relationships	26,403		(7,753		)	18,650		26,415		(5,852		)	20,563
Total carrying amount	$	42,129	$	(14,497	)	$	27,632	$	42,530	$	(12,695	)	$	29,835


⁽¹⁾	This table excludes the gross value of fully amortized intangible assets totaling $6.5 million and $9.1 million on September 30, 2013 and December 31, 2012, 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 September 30,				Nine Months Ended September 30,
(In thousands)	2013		2012		2013		2012
Cost of sales	$	34	$	73	$	177	$	231
Selling, general and administrative	986		971		2,930		2,890
Total amortization expense	$	1,020	$	1,044	$	3,107	$	3,121

Estimated future amortization expense related to our intangible assets at September 30, 2013, is as follows:



(In thousands)
2013 (remaining 3 months)	$	1,021
2014	4,053
2015	3,890
2016	3,858
2017	3,830
Thereafter	10,980
Total	$	27,632

Impairment charges are recorded in selling, general and administrative expenses as a component of amortization expense, except impairment charges related to capitalized software development costs which are recorded in cost of sales. We recorded immaterial impairment charges related to our intangible assets for the three and nine months ended September 30, 2013 and 2012.

We disposed of nine patents and twelve trademarks with an immaterial aggregate carrying amount during the nine months ended September 30, 2013. We disposed of thirteen patents with an immaterial aggregate carrying amount during the nine months ended September 30, 2012. These assets no longer held any probable future economic benefits and thus were written-off.

- 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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