Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The Company completes its annual impairment test during the fourth quarter of each year, or more frequently if triggering events indicate a possible impairment. The Company continually evaluates financial performance, economic conditions and other relevant developments in assessing if an interim period impairment test is necessary. Since its inception and through September 30, 2016, the Company has not recorded an impairment charge, but if the Company's stock price continues to trade at its current levels without recovery, the Company may be required to record an impairment in the future and such amount could be material. Changes in the carrying amount of goodwill for the nine months ended September 30, 2016 are as follows:



(in thousands)	Goodwill
Balance as of December 31, 2015	$	56,006
Measurement-period adjustments	6,367
Balance as of September 30, 2016	$	62,373

The Company’s other intangible assets at September 30, 2016 and December 31, 2015 consisted of the following:



	September 30, 2016							December 31, 2015
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Other intangible assets:
Developed technology	$	757,000	$	(45,803	)	$	711,197	$	757,000	$	(16,360	)	$	740,640
In-process research and development	39,000		(181		)	38,819		39,000		—			39,000
Trade name	35,500		—			35,500		35,500		—			35,500
Service provider network	2,000		—			2,000		2,000		—			2,000
Customer relationships	8,000		(389		)	7,611		8,000		(139		)	7,861
Software	135		(16		)	119		60		(5		)	55
Total intangible assets	$	841,635	$	(46,389	)	$	795,246	$	841,560	$	(16,504	)	$	825,056

At September 30, 2016, the weighted-average amortization period for the finite-lived intangible assets was 18.7 years. At September 30, 2016, the weighted-average amortization period for developed technology, customer relationships, in-process research and development, and software was 18.7, 23.1, 17.1, and 4.1 years, respectively.

Estimated annual amortization expense for finite-lived intangible assets subsequent to September 30, 2016 is as follows:



(in thousands)	Amount
2016 (remaining)	$	10,446
2017	41,785
2018	41,785
2019	41,781
2020	41,773
Thereafter	580,176
	$	757,746

- 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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