Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

At September 30, 2016 and December 31, 2015, the Company had $229.8 million and $224.4 million of goodwill, respectively. The additions to goodwill and other intangibles relate to the Company’s acquisition of Verilume, Inc., a cloud infrastructure company. The Company completed the purchase price allocation related to this transaction and recorded the acquired assets and assumed liabilities at their estimated fair values.

At September 30, 2016, other intangibles consisted of the following:



	Definite–Lived Intangible Assets
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
	(In thousands)
Customer relationships	$	141,973	$	(131,789	)	$	10,184
Developed technology	135,792		(128,023		)	7,769
Trade name	14,629		(11,330		)	3,299
Non-compete agreements	1,687		(1,378		)	309
Total	$	294,081	$	(272,520	)	$	21,561

At December 31, 2015, other intangibles consisted of the following:



	Definite–Lived Intangible Assets
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
	(In thousands)
Customer relationships	$	141,973	$	(121,141	)	$	20,832
Developed technology	134,542		(121,634		)	12,908
Trade name	14,629		(10,416		)	4,213
Non-compete agreements	1,337		(1,184		)	153
Total	$	292,481	$	(254,375	)	$	38,106

Amortization of intangible assets is classified in each of the operating expense categories as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(In thousands)
Cost of revenue	$	2,145	$	2,083	$	6,389	$	6,248
Sales and marketing	3,550		3,549		10,648		10,648
General and administrative	373		354		1,108		1,065
Total	$	6,068	$	5,986	$	18,145	$	17,961

At September 30, 2016, amortization of intangible assets for each of the next five years and thereafter is estimated to be as follows:



	Amount
	(In thousands)
Remainder of 2016	$	6,069
2017	12,224
2018	1,911
2019	966
2020	281
Thereafter	110
Total	$	21,561

- 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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