Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the six months ended June 30, 2018 were as follows (in thousands):



	TASER Weapons			Software and Sensors			Total
Balance, beginning of period	$	1,453		$	13,474		$	14,927
Goodwill acquired	—			9,870			9,870
Foreign currency translation adjustment	(56		)	(57		)	(113		)
Balance, end of period	$	1,397		$	23,287		$	24,684

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



		June 30, 2018							December 31, 2017
	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	$	(580	)	$	2,581	$	3,161	$	(428	)	$	2,733
Issued patents	4-15 years	2,858		(1,004		)	1,854		2,697		(913		)	1,784
Issued trademarks	3-11 years	1,010		(545		)	465		860		(397		)	463
Customer relationships	4-8 years	3,742		(616		)	3,126		1,377		(451		)	926
Non-compete agreements	3-4 years	548		(398		)	150		556		(346		)	210
Developed technology	3-7 years	15,449		(5,594		)	9,855		13,469		(3,956		)	9,513
Re-acquired distribution rights	2 years	2,023		(1,349		)	674		2,133		(711		)	1,422
Total amortized		28,791		(10,086		)	18,705		24,253		(7,202		)	17,051
Not amortized:
TASER trademark		900					900		900					900
Patents and trademarks pending		837					837		872					872
Total not amortized		1,737					1,737		1,772					1,772
Total intangible assets		$	30,528	$	(10,086	)	$	20,442	$	26,025	$	(7,202	)	$	18,823

Amortization expense of intangible assets for the three and six months ended June 30, 2018 was $1.7 million and $3.0 million, respectively. Amortization expense of intangible assets for the three and six months ended June 30, 2017 was $1.0 million and $1.9 million, respectively. Estimated amortization for intangible assets with definite lives for the remaining six months of 2018, the next five years ended December 31, and thereafter, is as follows (in thousands):



2018	$	3,179
2019	4,884
2020	3,417
2021	2,847
2022	1,192
2023	926
Thereafter	2,260
Total	$	18,705

- 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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