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Goodwill and Intangible Assets, Net (Tables)
9 Months Ended
Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
Changes in the carrying amount of goodwill were as follows:
(In thousands)
 
Balance at December 31, 2016
$
43,052

Goodwill acquired during the period (1)
5,494

Foreign exchange effects
78

Balance at September 30, 2017
$
48,624

 

(1) During the second quarter of 2017, we recorded $5.5 million of goodwill related to the Residential Control Systems, Inc. acquisition. Refer to Note 18 for further information about this acquisition.
Schedule of Components of Intangible Assets
The components of intangible assets, net were as follows:
 
September 30, 2017
 
December 31, 2016
(In thousands)
Gross (1)
 
Accumulated
Amortization (1)
 
Net
 
Gross (1)
 
Accumulated
Amortization (1)
 
Net
Distribution rights
$
340

 
$
(155
)
 
$
185

 
$
302

 
$
(119
)
 
$
183

Patents
12,593

 
(4,996
)
 
7,597

 
12,038

 
(4,775
)
 
7,263

Trademarks and trade names (2)
2,786

 
(1,518
)
 
1,268

 
2,400

 
(1,310
)
 
1,090

Developed and core technology
12,560

 
(5,567
)
 
6,993

 
12,585

 
(4,068
)
 
8,517

Capitalized software development costs
142

 
(59
)
 
83

 
142

 
(5
)
 
137

Customer relationships (2)
32,534

 
(18,613
)
 
13,921

 
27,703

 
(16,344
)
 
11,359

Order backlog (2)
150

 
(38
)
 
112

 

 

 

Total intangible assets, net
$
61,105

 
$
(30,946
)
 
$
30,159


$
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 at September 30, 2017 and December 31, 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 18 for further information regarding the purchase of these intangible assets.
Intangible Assets Amortization Expense
Amortization expense by income statement caption was as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In thousands)
2017
 
2016
 
2017
 
2016
Cost of sales
$
54

 
$
21

 
$
128

 
$
63

Selling, general and administrative expenses
1,715

 
1,551

 
5,032

 
4,618

Total amortization expense
$
1,769

 
$
1,572


$
5,160


$
4,681

Schedule of Estimated Future Amortization Expense
Estimated future annual amortization expense related to our intangible assets at September 30, 2017, is as follows:
(In thousands)
 
2017 (remaining 3 months)
$
1,776

2018
7,046

2019
6,901

2020
5,740

2021
2,289

Thereafter
6,407

Total
$
30,159