Goodwill and Purchased Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets

Goodwill

The following table presents the goodwill activity (in millions):



	Total
December 31, 2015	$	2,981.3
Additions due to business combinations	100.4
December 31, 2016	3,081.7
Additions due to business combination	16.7
Other^(*)	(2.2		)
December 31, 2017	$	3,096.2

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^(*) Other primarily consists of certain purchase accounting adjustments related to the acquisition of BTI.

In the fourth quarter of 2017, the Company performed its annual goodwill impairment test for the Company's three reporting units: Routing, Switching, and Security. For the years ended December 31, 2017, 2016, and 2015 there was no goodwill impairment during the respective periods.

Purchased Intangible Assets

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



	As of December 31, 2017										As of December 31, 2016
	Gross		Accumulated Amortization			Accumulated Impairments and Other Charges			Net		Gross		Accumulated Amortization			Accumulated Impairments and Other Charges			Net
Finite-lived intangible assets:
Technologies and patents	$	640.3	$	(518.1	)	$	(49.9	)	$	72.3	$	624.9	$	(504.2	)	$	(49.9	)	$	70.8
Customer contracts, support agreements, and related relationships	83.6		(74.1		)	(2.8		)	6.7		83.6		(70.8		)	(2.8		)	10.0
Other	2.0		(1.9		)	—			0.1		2.0		(1.6		)	—			0.4
Total	725.9		(594.1		)	(52.7		)	79.1		710.5		(576.6		)	(52.7		)	81.2
Indefinite-lived intangible assets:
IPR&D	49.0		—			—			49.0		49.0		—			—			49.0
Total purchased intangible assets	$	774.9	$	(594.1	)	$	(52.7	)	$	128.1	$	759.5	$	(576.6	)	$	(52.7	)	$	130.2

Amortization expense was $17.5 million, $16.3 million, and $28.5 million for the years ended December 31, 2017, 2016, and 2015, respectively. There were no impairment charges related to purchased intangible assets during the years ended December 31, 2017 and 2016. During the year ended December 31, 2015, the Company recorded $5.6 million to cost of revenues in the Consolidated Statements of Operations, related to the acceleration of the end-of-life of certain intangible assets.

As of December 31, 2017, the estimated future amortization expense of purchased intangible assets with finite lives is as follows (in millions):



Years Ending December 31,	Amount
2018	$	17.5
2019	17.3
2020	17.2
2021	12.9
2022	7.7
Thereafter	6.5
Total	$	79.1

- 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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