Goodwill and Purchased Intangible Assets

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets

Goodwill

The following table presents goodwill activity during the six months ended June 30, 2016 (in millions):



Balance as of December 31, 2015	$	2,981.3
Additions due to business combination	20.3
Balance as of June 30, 2016	$	3,001.6

There were no impairments to goodwill during the three and six months ended June 30, 2016 and June 30, 2015.

Purchased Intangible Assets

The Company’s purchased intangible assets were as follows (in millions):



	Gross		Accumulated Amortization			Accumulated Impairments and Other Charges			Net
As of June 30, 2016
Intangible assets with finite lives:
Technologies and patents	$	604.8	$	(498.1	)	$	(49.9	)	$	56.8
Customer contracts, support agreements, and related relationships	83.4		(69.2		)	(2.8		)	11.4
Other	2.0		(1.1		)	—			0.9
Total purchased intangible assets	$	690.2	$	(568.4	)	$	(52.7	)	$	69.1

As of December 31, 2015
Intangible assets with finite lives:
Technologies and patents	$	567.7	$	(491.8	)	$	(49.9	)	$	26.0
Customer contracts, support agreements, and related relationships	78.1		(67.8		)	(2.8		)	7.5
Other	1.1		(0.7		)	—			0.4
Total purchased intangible assets	$	646.9	$	(560.3	)	$	(52.7	)	$	33.9

The following table presents the amortization of intangible assets included in the Condensed Consolidated Statements of Operations (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Cost of revenues	$	3.6	$	4.7	$	6.0	$	15.5
Operating expenses:
Sales and marketing	0.8		0.6		1.3		1.4
General and administrative	0.4		0.3		0.8		0.7
Total operating expenses	1.2		0.9		2.1		2.1
Total	$	4.8	$	5.6	$	8.1	$	17.6

During the six months ended June 30, 2015, the Company recorded $5.6 million to cost of revenues in the Condensed Consolidated Statements of Operations, related to the acceleration of the end-of-life of certain intangible assets. There were no such charges during the three and six ended June 30, 2016.

There were no impairment charges related to purchased intangible assets during the three and six months ended June 30, 2016 and June 30, 2015.

As of June 30, 2016, the estimated future amortization expense of purchased intangible assets with finite lives is as follows (in millions):



Years Ending December 31,	Amount
Remainder of 2016	$	8.1
2017	12.5
2018	10.4
2019	10.2
2020	10.1
Thereafter	17.8
Total	$	69.1

- 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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