Intangible Assets

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets related to licenses are recorded at cost, less accumulated amortization. Intangible assets related to technology and other intangible assets acquired in acquisitions are recorded at fair value at the date of acquisition, less accumulated amortization. Intangible assets are amortized over their estimated useful lives, ranging from 3 to 15 years, on a straight-line basis. Amortization of intangible assets is primarily included in cost of sales, research and development and sales and marketing in the Condensed Consolidated Statements of Operations.

The recorded value and accumulated amortization of major classes of intangible assets were as follows (in thousands):



	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Balance, March 31, 2016
Licenses	$	11,256	$	(7,342	)	$	3,914
Technology acquired in acquisitions	8,613		(8,613		)	—
Customer relationships and other intangible assets acquired in acquisitions	35,849		(15,951		)	19,898
	$	55,718	$	(31,906	)	$	23,812
Balance, December 31, 2015
Licenses	$	11,454	$	(7,280	)	$	4,174
Technology acquired in acquisitions	8,613		(8,613		)	—
Customer relationships and other intangible assets acquired in acquisitions	35,849		(14,782		)	21,067
	$	55,916	$	(30,675	)	$	25,241

Intangible asset amortization expense was $1.4 million and $1.7 million for the three months ended March 31, 2016 and 2015, respectively. The following table summarizes the expected future annual amortization expense of intangible assets recorded on the Company’s Condensed Consolidated Balance Sheet as of March 31, 2016, assuming no impairment charges (in thousands):



For the Years Ending December 31,	Amortization Expense

2016 (remaining nine months)	$	4,361
2017	5,448
2018	5,144
2019	4,168
2020	3,891
Thereafter	800
Total expected future amortization	$	23,812

- 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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