Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2018

5. Goodwill and Intangible Assets

Goodwill

Changes in the carrying amount of goodwill consisted of the following (in thousands):


	Amount
Balance at December 31, 2017	$	21,867
Measurement period adjustments		(37)
Foreign currency translation adjustment		(158)
Balance at June 30, 2018	$	21,672

Goodwill represents the excess of consideration transferred over the fair value of assets acquired and liabilities assumed.

Amortizable Intangible Assets

The Company’s intangible assets and related accumulated amortization consisted of the following as of June 30, 2018 and December 31, 2017 (in thousands):


	June 30, 2018
		Gross Carrying		Accumulated
		Amount		Amortization		Net
Developed technology	$	17,378	$	(8,394)	$	8,984
Customer relationships		12,008		(3,303)		8,705
Trademark/trade name		6,776		(1,150)		5,626
Non-competition agreements		295		(295)		—
Total intangible assets	$	36,457	$	(13,142)	$	23,315

	December 31, 2017
	Gross Carrying		Accumulated
	Amount		Amortization		Net
Developed technology	$	19,626	$	(8,914)	$	10,712
Customer relationships		12,009		(2,556)		9,453
Trademark/trade name		6,776		(869)		5,907
Non-competition agreements		295		(286)		9
Total intangible assets	$	38,706	$	(12,625)	$	26,081

The weighted average amortization period for developed technology, customer relationships, and trademarks/trade names is 6.9 years, 8.4 years, and 12.0 years, respectively; and 7.3 years for all amortizable intangible assets in total.

The Company recorded amortization expense during the three and six month periods ended June 30, 2018 and 2017 for these intangible assets as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Cost of revenue	$	924	$	791	$	1,845	$	1,565
Research and development		18		47		46		95
Sales and marketing		497		483		994		891
Total amortization of intangible assets	$	1,439	$	1,321	$	2,885	$	2,551

Amortization of finite lived intangible assets as of June 30, 2018 for the next five years is as follows (in thousands):


	Amount
Remainder of 2018	$	2,759
2019		5,556
2020		4,608
2021		2,256
2022		2,093
Thereafter		6,043
	$	23,315

- 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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