Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the nine months ended September 30, 2017 were as follows (in thousands):



	TASER Weapons		Software and Sensors		Total
Balance, beginning of period	$	562	$	9,880	$	10,442
Goodwill acquired	825		3,505		4,330
Purchase accounting adjustments	—		23		23
Foreign currency translation adjustment	64		64		128
Balance, end of period	$	1,451	$	13,472	$	14,923

Intangible assets (other than goodwill) consisted of the following (in thousands):



		September 30, 2017							December 31, 2016
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortized:
Domain names	5-10 years	$	3,161	$	(352	)	$	2,809	$	3,161	$	(125	)	$	3,036
Issued patents	4-15 years	1,985		(874		)	1,111		1,942		(780		)	1,162
Issued trademarks	3-11 years	714		(378		)	336		655		(320		)	335
Customer relationships	4-8 years	1,374		(389		)	985		914		(240		)	674
Non-compete agreements	3-4 years	555		(317		)	238		465		(236		)	229
Developed technology	3-7 years	14,480		(3,159		)	11,321		8,661		(824		)	7,837
Re-acquired distribution rights	2 years	2,140		(357		)	1,783		—		—			—
Total amortized		24,409		(5,826		)	18,583		15,798		(2,525		)	13,273
Not amortized:
TASER trademark		900					900		900					900
Patents and trademarks pending		1,275					1,275		1,045					1,045
Total not amortized		2,175					2,175		1,945					1,945
Total intangible assets		$	26,584	$	(5,826	)	$	20,758	$	17,743	$	(2,525	)	$	15,218

Amortization expense of intangible assets for the three and nine months ended September 30, 2017 was $1.4 million and $3.3 million, respectively. Amortization expense of intangible assets for the three and nine months ended September 30, 2016 was $0.2 million and $0.7 million, respectively. Estimated amortization for intangible assets with definite lives for the remaining three months of 2017, the next five years ended December 31, and thereafter, is as follows (in thousands):



2017 (remaining three months)	$	1,398
2018	5,585
2019	4,036
2020	2,568
2021	2,433
2022	782
Thereafter	1,781
Total	$	18,583

- 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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