Goodwill and Intangible Assets

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Goodwill

During the years ended December 31, 2019 and 2018, goodwill increased in connection with the acquisitions of BRAVEN, Gear4, and HALO. The following table summarizes the changes in goodwill during 2019 and 2018:

Balance as of December 31, 2017	$	12,272
Increase in connection with the acquisition of BRAVEN	298
Increase in connection with the acquisition of Gear4	15,068
Balance as of December 31, 2018	27,638
Increase in connection with the acquisition of HALO	15,931
Balance as of December 31, 2019	$	43,569

The Company noted no impairment of goodwill for the years ended December 31, 2019 and 2018.

Long-lived Intangibles

The following tables reflect the gross carrying amount and accumulated amortization of the Company's long-lived intangible assets, net for the years ended December 31, 2019 and 2018:

	For the Year Ended December 31, 2019
	Gross Carrying Amount		Acquisitions		Accumulated Amortization		Net Carrying Amount		Weighted Average Amortization Period
Customer relationships	$	60,886	$	12,346	$	(51,718)	$	21,514	7.7 years
Trade names	43,787		4,409		(22,325)		25,871		9.7 years
Patents and technology	19,323		11,306		(15,323)		15,306		8.3 years
Non-compete agreements	5,896		—		(5,477)		419		4.9 years
Other	789		—		(789)		—		1.8 years
Total amortizable assets	$	130,681	$	28,061	$	(95,632)	$	63,110	8.3 years

	For the Year Ended December 31, 2018
	Gross Carrying Amount		Acquisitions		Accumulated Amortization		Net Carrying Amount		Weighted Average Amortization Period
Customer relationships	$	49,700	$	11,186	$	(45,326)	$	15,560	7.6 years
Trade names	31,269		12,518		(16,799)		26,988		9.9 years
Patents and technology	18,451		872		(10,600)		8,723		8.0 years
Non-compete agreements	5,896		—		(5,118)		778		4.9 years
Other	567		222		(784)		5		1.8 years
Total amortizable assets	$	105,883	$	24,798	$	(78,627)	$	52,054	8.3 years

On April 11, 2017, the Company received a final court order stating that the claims of one of its patents were either unpatentable or canceled. Accordingly, management determined that the patent’s carrying value was not recoverable through future cash flows and was impaired as of March 31, 2017. Consequently, the Company recorded an impairment loss consisting of a reduction of gross carrying amount of $2,777, accumulated amortization of $818, and net carrying value of $1,959 to reduce the net carrying value of the canceled patent to $0.

Customer relationships, trade names, and other intangibles are amortized on an accelerated basis consistent with their expected future cash flows over their estimated useful lives, which results in accelerated amortization. The remaining long-lived intangible assets are amortized using the straight-line method over their estimated useful life. For the years ended December 31, 2019, 2018, and 2017, amortization expenses were $17,005, $11,988, and $12,159, respectively, which were primarily recorded as a component of operating expenses; however, amortization expenses related to acquired technology for the years ended December 31, 2019, 2018, and 2017 of $0, $106, and $112, respectively, were recorded as a component of cost of sales in the consolidated statements of income.

Estimated future amortization expense for long-lived intangibles is as follows:

2020	$	14,042
2021	12,117
2022	9,909
2023	8,506
2024	6,695
Thereafter	11,841
Total	$	63,110