Goodwill And Identified Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Identified Intangible Assets

GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

In 2017, the Company assessed goodwill impairment for its segments by performing a qualitative assessment. No impairment of goodwill was indicated as the Company concluded that it was more likely than not that the fair value of its reporting units exceeded its carrying amount. In addition, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to the impairment testing performed in the fourth quarter of the year ended December 31, 2017.

The changes to the carrying value of goodwill from January 1, 2016 through December 31, 2017 are reflected below (in thousands):



December 31, 2015	$	10,136
Goodwill acquired through the acquisition of DTS (1)	372,827
December 31, 2016	$	382,963
Purchase price adjustment related to the acquisition of DTS (2)	2,611		(2)
December 31, 2017	$	385,574	(3)

(1) For more information regarding these transactions, see Note 8 - " Business Combinations."

(2) Represents the net impact to goodwill of all measurement adjustments, primarily relating to unbilled contracts receivable and to certain acquired tax attributes and related uncertain income tax positions. See Note 8 - "Business Combinations."

(3) Of this amount, approximately $377.9 million is allocated to the Company's Product Licensing reporting segment and approximately $7.7 million is allocated to its Semiconductor and IP Licensing reporting segment.

Identified intangible assets consisted of the following (in thousands):



		December 31, 2017							December 31, 2016
	Average Life (Years)	Gross Assets		Accumulated Amortization			Net		Gross Assets		Accumulated Amortization			Net
Acquired patents / core technology	3-15	$	142,584	$	(113,349	)	$	29,235	$	140,744	$	(96,896	)	$	43,848
Existing technology	5-10	204,394		(61,518		)	142,876		203,442		(27,315		)	176,127
Customer contracts and related relationships	3-9	291,769		(68,267		)	223,502		291,769		(14,011		)	277,758
Trademarks/trade name	4-10	40,083		(6,111		)	33,972		40,083		(1,138		)	38,945
Non-competition agreements	1	2,231		(2,231		)	—		2,231		(186		)	2,045
Total amortizable intangible assets		681,061		(251,476		)	429,585		678,269		(139,546		)	538,723
In-Process R&D		2,204		—			2,204		$	3,156	$	—		$	3,156
Total intangible assets		$	683,265	$	(251,476	)	$	431,789	$	681,425	$	(139,546	)	$	541,879

Amortization expense for the years ended December 31, 2017, 2016, and 2015 amounted to $111.9 million, $31.9 million and $20.6 million, respectively. As of December 31, 2017, the estimated future amortization expense of intangible assets is as follows (in thousands):




2018	$	107,941
2019	98,855
2020	87,140
2021	79,478
2022	31,173
Thereafter	24,998
	$	429,585

- 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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