Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

4. Goodwill and Intangible Assets

Goodwill and intangible assets consisted of the following:

	Weighted-
	Average
	Amortization
(in thousands, except years)	Period	Gross		Accumulated			Intangible
September 30, 2016:	(in years)	Amount		Amortization			Assets, net
Intangible assets subject to amortization:
Developed technology	8	$	246,948	$	(58,589	)	$	188,359
Manufacturing know-how and trade secrets	12		21,809		(14,460	)		7,349
Trade name and trademarks	9		25,700		(7,205	)		18,495
Customer relationships	9		125,722		(35,997	)		89,725
Total intangible assets subject to amortization	9	$	420,179	$	(116,251	)	$	303,928

Intangible assets not subject to amortization:
Goodwill							$	498,686
Total goodwill and intangible assets, net							$	802,614

	Weighted-
	Average
	Amortization
	Period	Gross		Accumulated			Intangible
December 31, 2015:	(in years)	Amount		Amortization			Assets, net
Intangible assets subject to amortization:
Developed technology	9	$	92,648	$	(37,382	)	$	55,266
Manufacturing know-how and trade secrets	12		21,787		(13,296	)		8,491
Trade name and trademarks	11		9,500		(5,068	)		4,432
Customer relationships	8		44,752		(27,865	)		16,887
Total intangible assets subject to amortization	10	$	168,687	$	(83,611	)	$	85,076

Intangible assets not subject to amortization:
Goodwill							$	154,281
Total goodwill and intangible assets, net							$	239,357

During the nine months ended September 30, 2016, in connection with acquisitions and other investments, the Company recorded additions to definite-lived intangible assets and goodwill of $251.5 million and $343.6 million, respectively. Goodwill recorded in business combinations is primarily attributable to synergies expected to arise after the acquisition. See Note 5 to the Unaudited Consolidated Financial Statements for further discussion on assets acquired in business combinations and asset acquisitions.

The following table summarizes the changes in the carrying value of the Company’s goodwill:

(in thousands)
December 31, 2015
Gross goodwill	$	162,581
Accumulated impairment loss		(8,300	)
		154,281
Changes to gross goodwill
Increases recorded in business combinations		343,620
Changes resulting from foreign currency fluctuations		785
		344,405
September 30, 2016
Gross goodwill		506,986
Accumulated impairment loss		(8,300	)
	$	498,686

Total expense related to the amortization of intangible assets, which is recorded in both cost of goods sold and operating expenses in the Consolidated Statements of Operations, was $12.3 million and $4.0 million for the three months ended September 30, 2016 and September 30, 2015, respectively, and $32.6 million and $11.7 million for the nine months ended September 30, 2016 and September 30, 2015, respectively.

Total future amortization expense related to intangible assets subject to amortization at September 30, 2016 is set forth in the table below:

(in thousands)
Remaining 2016	$	12,851
2017		48,217
2018		46,122
2019		44,438
2020		43,982
2021		42,063
Thereafter through 2027		66,255
Total future amortization expense	$	303,928

- 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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