Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

There was no change in goodwill during the year ended December 31, 2017 with a balance at December 31, 2017 of $12,272. During the year ended December 31, 2016, goodwill changed from $0 to $12,272 due to the Company’s acquisition of mophie on March 3, 2016. The following table summarizes the changes in goodwill during 2016:



Balance at December 31, 2015	$	—
Increase due to acquisitions	12,272
Balance at December 31, 2016	$	12,272

The Company noted no impairment of goodwill for the year ended December 31, 2017.

Long-lived Intangibles



	December 31, 2017
	Gross Carrying Amount		Impairments			Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Customer relationships	$	49,700	$	—		$	(40,441	)	$	9,259	7.5 years
Tradenames	31,269		—			(13,415		)	17,854		9.8 years
Patents and technology	21,228		(2,777		)	(7,470		)	10,981		8.8 years
Non-compete agreements	5,896		—			(4,759		)	1,137		4.9 years
Other	567		—			(554		)	13		2.4 years
Total amortizable assets	$	108,660	$	(2,777	)	$	(66,639	)	$	39,244	8.2 years



	December 31, 2016
	Gross Carrying Amount		Acquisitions		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period
Customer relationships	$	41,500	$	8,200	$	(35,088	)	$	14,612	7.5 years
Tradenames	12,921		18,348		(9,763		)	21,506		9.8 years
Patents and technology	6,003		15,225		(5,501		)	15,727		8.8 years
Non-compete agreements	4,100		1,796		(4,399		)	1,497		4.9 years
Other	324		243		(547		)	20		2.4 years
Total amortizable assets	$	64,848	$	43,812	$	(55,298	)	$	53,362	8.2 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 cancelled. 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 cancelled patent to $0.

Customer relationships, trademarks, 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, 2017, 2016, and 2015 amortization expense was $12,159, $13,495, and $8,562, respectively. Amortization expense was primarily recorded as a component of operating expense, however, amortization expense related to acquired technology for the years ended December 31, 2017, 2016, and 2015 of $112, $110, and $109, respectively, was recorded as a component of cost of sales.

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



2018	$	11,171
2019	9,122
2020	6,454
2021	3,876
2022	2,766
Thereafter	5,855
Total	$	39,244

- 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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