Goodwill and Acquired Intangible Assets

3 Months Ended

Mar. 31, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

5. Goodwill and Acquired Intangible Assets

Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually.

The Company did not have any goodwill impairments during three months ended March 31, 2018 and 2017.

The changes in the carrying amount of goodwill for the period ended March 31, 2018 were as follows (in thousands):



Balance as of January 1	$	36,389
Changes during the three month period		-
Balance as of March 31	$	36,389

The Company amortizes intangible assets, which consist of purchased technologies that have estimated useful lives ranging from 7 to 10 years, using the straight-line method when the consumption pattern of the asset cannot be reliably determined. The Company reviews such assets for impairment whenever an impairment indicator exists and continually monitors events and changes in circumstances that could indicate carrying amounts of the intangible assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses recoverability by determining whether the carrying value of such assets exceed the estimates of future undiscounted future cash flows expected to be generated by such assets. Should impairment exist, the impairment loss would be measured based on the excess carrying value of the asset over the asset’s estimated fair value. There was no impairment of intangible assets recorded for the three months ended March 31, 2018 and 2017.

Acquired intangible assets subject to amortization are presented as follows (in thousands):

	As of March 31, 2018
	Weighted Average Remaining Useful life (years)		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Acquired technology		5.8	$	3,753	$	(1,321	)	$	2,432
Customer relationships		5.7		480		(90	)		390
Trade name and other		5.7		280		(50	)		230
Total acquired intangibles		5.7	$	4,513	$	(1,461	)	$	3,052


	As of December 31, 2017
	Weighted Average Remaining Useful life (years)		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Acquired technology		6.0	$	3,753	$	(1,216	)	$	2,537
Customer relationships		6.0		480		(71	)		409
Trade name and other		6.0		280		(42	)		238
Total acquired intangibles		6.0	$	4,513	$	(1,329	)	$	3,184

As of March 31, 2018, the amortization expense in future periods is expected to be as follows (in thousands):

	Acquired
Fiscal Year	Technology
2018 (remaining 9 months)		397
2019		529
2020		529
2021		529
Thereafter		1,068
Total expected amortization expense	$	3,052

- 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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