Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2017

Note 4. Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the year to date period ended June 30, 2017 are as follows (in thousands):


	CPE			N & C			Total
Goodwill	$	1,391,171		$	1,003,654		$	2,394,825
Accumulated impairment losses		—			(378,656	)		(378,656	)

Balance as of December 31, 2016	$	1,391,171		$	624,998		$	2,016,169

Changes in year 2017:
Currency translation and other		(1,619	)		—			(1,619	)

Balance as of June 30, 2017	$	1,389,552		$	624,998		$	2,014,550

Goodwill		1,389,552			1,003,654			2,393,206
Accumulated impairment losses		—			(378,656	)		(378,656	)

Balance as of June 30, 2017	$	1,389,552		$	624,998		$	2,014,550

Intangible Assets

The gross carrying amount and accumulated amortization of the Company’s acquired intangible assets are as follows (in thousands):


	June 30, 2017						December 31, 2016
	Gross Amount		Accumulated Amortization		Net Book Value		Gross Amount		Accumulated Amortization		Net Book Value
Definite-lived intangible assets:
Customer relationships	$	1,572,554	$	702,099	$	870,455	$	1,572,947	$	624,719	$	948,228
Developed technology, patents & licenses		1,250,894		671,853		579,041		1,248,719		571,808		676,911
Trademarks, trade and domain names		62,872		31,265		31,607		83,472		41,433		42,039
Backlog		—		—		—		16,400		16,400		—

Sub-total	$	2,886,320	$	1,405,217	$	1,481,103	$	2,921,538	$	1,254,360	$	1,667,178

Indefinite-lived intangible assets:
Trademarks		5,900		—		5,900		5,900		—		5,900
In-process research and development		4,100		—		4,100		4,100		—		4,100

Sub-total		10,000		—		10,000		10,000		—		10,000

Total	$	2,896,320	$	1,405,217	$	1,491,103	$	2,931,538	$	1,254,360	$	1,677,178

As of June 30, 2017, certain fully amortized intangible assets have been eliminated from both the gross and accumulated amortization amounts.

Amortization expense is reported in the consolidated statements of operations within cost of goods sold and operating expenses. The following table presents the amortization of acquired intangible assets (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Cost of sales	$	711	$	667	$	1,422	$	1,033
Selling, general and administrative expenses		949		949		1,899		1,899
Amortization of acquired intangible assets ⁽¹⁾		91,012		109,883		184,657		208,375

Total	$	92,672	$	111,499	$	187,978	$	211,307

⁽¹⁾	Reflects amortization expense for the intangible assets acquired through business combinations.

The estimated total amortization expense for finite-lived intangibles for each of the next five fiscal years is as follows (in thousands):


2017 (for the remaining six months)	$	183,556
2018		316,628
2019		270,596
2020		258,866
2021		124,079
Thereafter		327,378

- 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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