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Purchased Intangible Assets and Goodwill
3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, net

Note 5. Purchased Intangible Assets and Goodwill

In 2012, in connection with our purchase of the serial flash memory product line assets from Atmel Corporation, we recorded $16.4 million of intangible assets.

In connection with the acquisition of S3 (Note 2), we recorded $15.3 million of intangible assets.

In connection with the acquisition of Echelon (Note 2), we recorded $17.7 million of intangible assets.

Intangible assets, net were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2020

 

    

Estimated Useful

Life (in Years)

 

Gross Carrying

Amount

    

Accumulated

Amortization

 

Net Carrying

 Amount

Net Carrying
 Amount

Developed technology

 

4 - 10

 

$

16,032

 

$

7,734

 

$

8,298

Customer relationships

 

7 - 12

 

 

28,411

 

 

10,489

 

 

17,922

Customer backlog

 

1

 

 

2,779

 

 

2,779

 

 

 —

Contract backlog

 

0.5

 

 

210

 

 

210

 

 

 —

Non-compete agreement

 

2 - 5

 

 

662

 

 

635

 

 

27

Trademarks

 

8 - 12

 

 

1,290

 

 

217

 

 

1,073

Total intangible assets subject to amortization

 

 

 

$

49,384

 

$

22,064

 

$

27,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

    

Estimated Useful

Life (in Years)

 

    

Gross Carrying
Amount

    

Accumulated
Amortization

    

Net Carrying

 Amount

Developed technology

 

4 - 10

 

$

16,032

 

$

6,905

 

$

9,127

Customer relationships

 

7 - 12

 

 

28,411

 

 

9,608

 

 

18,803

Customer backlog

 

1

 

 

2,779

 

 

2,779

 

 

 —

Contract backlog

 

0.5

 

 

210

 

 

210

 

 

 —

Non-compete agreement

 

2 - 5

 

 

662

 

 

588

 

 

74

Trademarks

 

8 - 12

 

 

1,290

 

 

186

 

 

1,104

Total intangible assets subject to amortization

 

 

 

$

49,384

 

$

20,276

 

$

29,108

 

We recorded amortization expense related to the acquisition-related intangible assets as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 

 

 

    

2020

    

2019

    

Operating expense category:

 

 

  

 

 

  

 

Research and development

 

$

828

 

$

828

 

Selling, general and administrative

 

 

960

 

 

960

 

Total

 

$

1,788

 

$

1,788

 

 

The estimated future amortization expense of acquisition-related intangible assets subject to amortization after September 30, 2019 is as follows (in thousands):

 

 

 

 

 

Year Ended December 31, 

    

  

 

 

2020 (remaining 9 months)

 

$

5,249

 

2021

 

 

6,962

 

2022

 

 

6,070

 

2023

 

 

3,735

 

2024

 

 

3,463

 

Thereafter

 

 

1,841

 

Total

 

$

27,320