GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2013

GOODWILL AND INTANGIBLE ASSETS [Abstract]

6.	GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying value of goodwill for the three months ended March 31, 2013 were as follows (in thousands):

	Three Months Ended
	March 31,
	2013
Balance, December 31, 2012		$	960
Additions from Vineyard acquisition			12,751
Translation adjustments			(470	)
Balance, March 31, 2013		$	13,241

Intangible assets other than goodwill are amortized on a straight-line basis over the following estimated remaining useful lives.

The following table is a summary of acquired intangible assets with remaining net book values at March 31, 2013 (in thousands, except weighted average remaining life):

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Remaining Life
Developed technology	$	5,699	$	(262	)	$	5,437	4.76
Customer relationships	2,459		(114		)	2,345		4.76
Balance at March 31, 2013	$	8,158	$	(376	)	$	7,782

The Company had no acquired intangible assets with remaining book values at December 31, 2012.

For the three months ended March 31, 2013, amortization expense of $0.3 million related to developed technology was recorded in product cost of sales and amortization expense of $0.1 million related to customer relationships was recorded in operating expense.

The changes in the carrying value of acquired intangible assets during the three months ended March 31, 2012 were as follows (in thousands):

	Gross Carrying Value			Accumulated Amortization			Net Carrying Value
Balance at December 31, 2012	$	—		$	—		$	—
Additions	8,460			(376		)	8,084
Translation adjustments	(302		)	—			(302		)
Balance at March 31, 2013	$	8,158		$	(376	)	$	7,782

The following table presents the estimated future amortization of intangible assets as of March 31, 2013 (in thousands):

Fiscal Year	Amortization
2013 (remaining nine months)	$	1,220
2014		1,632
2015		1,632
2016		1,632
2017		1,632
Thereafter		34
Total	$	7,782

- 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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