9. Acquired Intangible Assets, Capitalized Software Development Costs, and Goodwill

Our acquired intangible assets and capitalized software development cost balances consisted of the following:

	December 31, 2014						December 31, 2013
	Gross						Gross
	Carrying		Accumulated				Carrying		Accumulated
	Amount		Amortization		Net		Amount		Amortization		Net
Acquired intangible assets and capitalized software development costs:
Acquired intangible assets, including customer lists	$	31,176	$	13,970	$	17,206	$	31,176	$	10,173	$	21,003
Capitalized software development costs		7,680		3,072		4,608		5,969		1,791		4,178
Total acquired intangible assets and capitalized software development costs	$	38,856	$	17,042	$	21,814	$	37,145	$	11,964	$	25,181

Estimated future amortization expense:

Year ending December 31, 2015	$	5,203
Year ending December 31, 2016		5,007
Year ending December 31, 2017		4,110
Year ending December 31, 2018		2,955
Year ending December 31, 2019		2,280
Thereafter		2,259
Total estimated future amortization expense	$	21,814

Acquired intangibles

In 2013 we recorded a $599 Platforms and Applications reporting unit impairment charge for the excess of the carrying value of acquired intangible assets over the estimated fair value. The weighted average remaining amortization period for acquired intangible assets, including customer lists and other as well as acquired technology included in software development costs is 3.9 years.

Capitalized software development costs

In 2014, 2013, and 2012 we capitalized $1,712, $1,987, and $1,890, respectively, of software development costs for software projects after the point of technological feasibility had been reached but before the products were available for general release. We routinely update our estimates of the recoverability of the software products that have been capitalized as the basis for evaluating the carrying values and remaining useful lives of the respective assets. In 2013, we recorded an impairment charge of $9,270 related to our Platforms and Applications reporting unit. In 2012, we recorded an impairment charge related to our Navigation reporting unit of $12,420.

Goodwill

The balances and changes in amount of goodwill are as follows:

	Commercial			Government
	Segment			Segment		Total
Balance as of December 31, 2012	$	58,154		$	54,296	$	112,450
2013 Impairment charge related to the adjusted fair value of the Platforms and Applications reporting unit		(8,209	)		—		(8,209	)
Balance as of December 31, 2013 and 2014	$	49,945		$	54,296	$	104,241

We assess goodwill for impairment in the fourth quarter of each year, or sooner should there be an indicator of impairment. We periodically analyze whether any such indicators of impairment exist. Such indicators include a sustained, significant decline in the Company’s stock price and market capitalization, a decline in the Company’s expected future cash flows, a significant adverse change in legal factors or in the business climate, unanticipated competition, and/or slower expected growth, among others. For goodwill impairment testing, we have four reporting units. In 2013, we reorganized the Commercial Segment so that one management team is now responsible for all Commercial Platforms & Applications other than the 9-1-1 Safety and Security part of the Commercial Segment. Previously, our Commercial Segment was comprised of Navigation and Other Commercial reporting units. Our two Government Segment reporting units, the Government Solutions Group unit and the Cyber Intelligence unit, remain the same.

Goodwill balances by reporting unit at December 31:

	2014		2013

Platforms and Applications	$	27,912	$	27,912
Safety and Security Group		22,033		22,033
Government Solutions Group		26,141		26,141
Cyber Intelligence		28,155		28,155
Total goodwill	$	104,241	$	104,241

In performing our 2014 testing for all of our reporting units, we used a discounted cash flow method as well as a market approach based on observable public comparable company multiples of revenue and earnings before interest, taxes, depreciation, amortization, and amortization of non-cash stock-based compensation (“Adjusted EBITDA”) and weighted the results from the two methods to estimate the reporting units’ fair values.

Our discounted cash flow models are based on our most recent long-range forecast and, for years beyond the forecast, we estimated terminal values based on perpetual cash flow growth rates ranging from 2.5% to 4.0%. The models reflect management’s expectation of future market conditions and expected levels of financial performance for our reporting units, as well as discount rates and estimated terminal values that would be used by market participants in an arms-length transaction. Business operational risks which could impact profits are detailed in our “Risk Factors” disclosures. Discount rates used were intended to reflect the risks inherent in the future cash flows of the respective reporting units and were between 13% and 15%.

For the market comparable approaches, we evaluated comparable company public trading values, and valued our reporting units using multiples of Adjusted EBITDA ranging from approximately 5 to 13 times and multiples of revenue ranging from 0.4 to 1.5 times. Comparable company public trading values are based on the market’s view of future industry conditions and the comparable companies’ future financial results. Adverse changes in any of these variables would negatively influence the valuation of our reporting units. It is not possible to determine the impact of such potential adverse changes on the valuation of our reporting units.

Determining fair value requires the exercise of significant judgment, including judgment about appropriate discount rates, the amount and timing of expected future cash flows, as well as relevant comparable company multiples for the market comparable approach and the relevant weighting of the methods utilized. For fiscal 2014, all of our reporting units passed the first step of the goodwill impairment testing, indicating no impairment.

Our fourth quarter 2013 impairment testing resulted in the write-down of our Platforms and Applications reporting unit’s goodwill from a carrying value of $36,121 to the estimated fair value of $27,912 at December 31, 2013, resulting in an impairment charge of $8,209. We used a discounted cash flow method to determine the fair value of the goodwill of the Platforms and Applications Reporting Unit. In performing our 2013 testing for our Safety and Security and Cyber Intelligence reporting units, we used a discounted cash flow method as well as a market approach based on observable public comparable company multiples of Adjusted EBITDA and weighted the results from the two methods to estimate the reporting units’ fair values. For our Government Solutions Group we used only a discounted cash flow method.

In the second quarter of 2012, due to a triggering event we recorded a goodwill impairment charge was of $86,332 for the excess of the carrying value of goodwill over the estimated fair value. There was no indication of any further impairment in any of our reporting units during the 2012 annual testing.