Goodwill and Purchased Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets

Note 6. Goodwill and Purchased Intangible Assets

Goodwill

The Company's goodwill activity was as follows (in millions):

	Total
December 31, 2018	$	3,108.8
Additions due to business combinations	228.3
December 31, 2019	3,337.1
Additions due to business combinations	332.5
December 31, 2020	$	3,669.6

In the fourth quarter of 2020, the Company performed its annual goodwill impairment test for the three reporting units: Routing, Switching, and Security. There was no goodwill impairment during the years ended December 31, 2020, 2019, and 2018.

Purchased Intangible Assets

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

	As of December 31, 2020								As of December 31, 2019
	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	$	823.5	$	(598.2)	$	(55.1)	$	170.2	$	729.1	$	(564.0)	$	(49.9)	$	115.2
Customer contracts, support agreements, and related relationships	129.2		(84.4)		(2.8)		42.0		98.6		(79.3)		(2.8)		16.5
Trade names and other	9.6		(4.1)		—		5.5		7.9		(2.8)		—		5.1
Total	962.3		(686.7)		(57.9)		217.7		835.6		(646.1)		(52.7)		136.8
Indefinite-lived intangible assets:
IPR&D	49.0		—		—		49.0		49.0		—		—		49.0
Total purchased intangible assets	$	1,011.3	$	(686.7)	$	(57.9)	$	266.7	$	884.6	$	(646.1)	$	(52.7)	$	185.8

Amortization expense related to purchased intangible assets with finite lives was $40.6 million, $34.7 million, and $17.4 million for the years ended December 31, 2020, 2019, and 2018, respectively. There were no significant impairment charges related to purchased intangible assets during the years ended December 31, 2020, 2019, and 2018.

As of December 31, 2020, the estimated future amortization expense of purchased intangible assets with finite lives is as follows (in millions):

Years Ending December 31,	Amount
2021	$	60.0
2022	54.0
2023	50.8
2024	31.3
2025	21.6
Total	$	217.7