Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2014

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
FX effects	110
Balance at December 31, 2013	$	31,000
FX effects	(261		)
Balance at December 31, 2014	$	30,739

We conducted annual goodwill impairment reviews on December 31, 2014, 2013, and 2012 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,
	2014							2013
(In thousands)	Gross ⁽¹⁾		Accumulated Amortization ⁽¹⁾			Net ⁽¹⁾		Gross ⁽¹⁾		Accumulated Amortization ⁽¹⁾			Net ⁽¹⁾
Distribution rights (10 years)	$	347	$	(76	)	$	271	$	395	$	(52	)	$	343
Patents (10 years)	10,107		(4,736		)	5,371		8,879		(4,251		)	4,628
Trademark and trade names (10 years)	2,001		(834		)	1,167		2,841		(1,411		)	1,430
Developed and core technology (5-15 years)	3,506		(1,373		)	2,133		3,506		(1,140		)	2,366
Capitalized software development costs (2 years)	276		(85		)	191		311		(133		)	178
Customer relationships (10-15 years)	26,406		(10,925		)	15,481		26,406		(8,388		)	18,018
Total intangible assets, net	$	42,643	$	(18,029	)	$	24,614	$	42,338	$	(15,375	)	$	26,963


⁽¹⁾	This table excludes the gross value of fully amortized intangible assets totaling $7.9 million and $6.6 million on December 31, 2014 and 2013, 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:



	Year Ended December 31,
(In thousands)	2014		2013		2012
Cost of sales	$	153	$	213	$	312
Selling, general and administrative	4,009		3,914		3,862
Total amortization expense	$	4,162	$	4,127	$	4,174

Estimated future amortization expense related to our intangible assets at December 31, 2014, is as follows:



(In thousands)
2015	$	4,153
2016	4,100
2017	4,015
2018	3,996
2019	3,995
Thereafter	4,355
Total	$	24,614

The remaining weighted average amortization period of our intangible assets is 6.2 years.

- 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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