Goodwill and Acquired Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

8. Goodwill and Acquired Intangible Assets

In December 2016, the Company completed the acquisition of Camouflage Software Inc., which $2.5 million was allocated to goodwill and $1.8 million to acquired intangible assets. The Company did not have any goodwill impairments during 2016, 2015 or 2014.

The changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 were as follows (in thousands):


Balance as of December 31, 2015	$	34,972
Goodwill acquired		2,476
Balance as of December 31, 2016	$	37,448

Acquired intangible assets subject to amortization as of December 31, 2016 and 2015 were as follows (in thousands):

	As of December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Acquired Technology	$	11,718	$	(4,085	)	$	7,633
Customer relationships		480		-			480
Trade name and other		280		-			280
Total	$	12,478	$	(4,085	)	$	8,393


	As of December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Acquired Technology	$	10,668	$	(2,677	)	$	7,991
Total	$	10,668	$	(2,677	)	$	7,991

Amortization expense related to acquired intangible assets was $1.4 million for the year ended December 31, 2016. Acquired intangible assets are amortized over their estimated useful lives of 7 to 10 years. Acquired technology, customer relationships, and trade names and other have weighted-average useful lives from the date of purchase of 5.2 years, 7.0 years, and 7.0 years, respectively. As of December 31, 2016, the Company expects amortization expense in future periods to be as follows (in thousands):

	Acquired
Fiscal Year	Intangibles
2017	$	1,666
2018		1,666
2019		1,666
2020		1,666
Thereafter		1,729
Total expected amortization expense	$	8,393

- 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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