Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

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



	Business		Consumer		Consolidated
Balance as of December 31, 2016	$	72,221	$	8,024	$	80,245
Adjustments to goodwill:
Foreign exchange adjustment	254		—		254
Balance as of September 30, 2017	$	72,475	$	8,024	$	80,499

Intangible Assets

Intangible assets are summarized as follows (amounts in thousands):



	As of September 30, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	28,252	$	(22,290	)	$	5,962	5.3 years
Customer relationships	15,856		(9,966		)	5,890		8.0 years
Trade names	1,299		(1,290		)	9		2.1 years
Non-compete agreements	1,449		(1,427		)	22		2.3 years
Patents	1,525		(461		)	1,064		13.0 years
Other	262		(235		)	27		2.7 years
Total	$	48,643	$	(35,669	)	$	12,974



	As of December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Amortizing intangible assets:
Technology	$	28,018	$	(19,736	)	$	8,282	5.3 years
Customer relationships	16,009		(8,857		)	7,152		8.0 years
Trade names	1,295		(1,277		)	18		2.1 years
Non-compete agreements	1,446		(1,220		)	226		2.3 years
Patents	1,180		(376		)	804		12.4 years
Other	263		(235		)	28		2.7 years
Total	$	48,211	$	(31,701	)	$	16,510

Amortization expense is calculated over the estimated useful life of the asset. Aggregate amortization expense for intangible assets was $1.1 million and $1.7 million for the three months ended September 30, 2017 and 2016, respectively. Aggregate amortization expense for intangible assets was $4.0 million and $5.0 million for the nine months ended September 30, 2017 and 2016, respectively. For the three and nine months ended September 30, 2017 and 2016, respectively, a portion of this amortization is included in cost of revenue. Estimated amortization expense for the next five years is as follows (amounts in thousands):



	Estimated Amortization Expense
2017	$	719
2018	2,594
2019	2,386
2020	2,190
2021	1,980
Thereafter	3,105
Total	$	12,974

- 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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