Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

As of June 30, 2020 and December 31, 2019, the Company had $49.2 million and $49.2 million of goodwill, respectively, with $41.2 million and $8.0 million allocated to the Company’s Product and Services operating segments, respectively. As of June 30, 2020, there were no changes in circumstances indicating that the carrying values of goodwill or acquired intangibles may not be recoverable.

Intangible Assets

Acquisition-related intangible assets are amortized either straight-line, or over the life of the assets on a basis that resembles the economic benefit of the assets. This yields amortization in the latter case that is higher in earlier periods of the useful life.

The estimated useful lives and carrying value of acquired intangible assets are as follows:



		June 30, 2020						December 31, 2019
(in thousands)	Range of Useful Life (years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	3 to 7	$	10,050	$	9,893	$	157	$	10,050	$	9,803	$	247
Customer relationships	7 to 9	10,920		6,356		4,564		10,920		5,819		5,101
Backlog	3	1,400		1,287		113		1,400		1,287		113
Non-compete agreements	2 to 4	460		460		—		460		460		—
Trademarks	3 to 7	1,110		1,110		—		1,110		1,110		—
Intangible assets, net book value		$	23,940	$	19,106	$	4,834	$	23,940	$	18,479	$	5,461

Amortization expense was $0.3 million and $1.0 million for the three months ended June 30, 2020 and 2019, respectively. Amortization expense was $0.6 million and $2.0 million for the six months ended June 30, 2020 and 2019, respectively

Amortization of acquired intangible assets is reflected in the cost of revenue for developed technology and backlog and in operating expenses for the other intangible assets. The estimated future amortization of existing acquired intangible assets as of June 30, 2020 was as follows:



(in thousands)	Future amortization
2020 (remaining six months)	$	729
2021	1,130
2022	1,050
2023	1,050
2024	875
Future amortization expense	$	4,834