Intangible Assets

The gross carrying amount and accumulated amortization of our intangible assets, other than goodwill, are as follows:



	September 30, 2013							December 31, 2012
	Gross Assets		Accumulated Amortization			Net		Gross Assets		Accumulated Amortization			Net
	(in thousands)
Core-developed technology	$	426,043	$	(348,292	)	$	77,751	$	407,024	$	(332,763	)	$	74,261
Customer contracts and relationships	288,347		(167,650		)	120,697		292,252		(154,890		)	137,362
Trademarks and trade names	72,559		(66,445		)	6,114		72,770		(65,090		)	7,680
Other	11,091		(11,023		)	68		11,094		(11,026		)	68
Total intangible assets subject to amortization	798,040		(593,410		)	204,630		783,140		(563,769		)	219,371
In-process research and development	—					—		19,400					19,400
Total intangible assets	$	798,040	$	(593,410	)	$	204,630	$	802,540	$	(563,769	)	$	238,771

A summary of the intangible asset account activity is as follows:



	Nine Months Ended September 30,
	2013			2012
	(in thousands)
Beginning balance, intangible assets, gross	$	802,540		$	749,194
Intangible assets acquired	(1,500		)	43,400
Effect of change in exchange rates	(3,000		)	1,220
Ending balance, intangible assets, gross	$	798,040		$	793,814

Intangible assets acquired in 2012 were related to the SmartSynch acquisition on May 1, 2012, including IPR&D assets that consisted primarily of projects to upgrade the hardware components of cellular communication modules to be compatible with 3G cellular network standards. Upon completion of these projects in March 2013, we performed a qualitative assessment and determined that it was more than likely that the carrying amount of IPR&D was not impaired. Accordingly, the carrying amount of IPR&D was reclassified as core-developed technology and will be amortized, based on the SmartSynch acquisition discounted cash flow valuation model, over its expected useful life of seven years. For the nine months ended September 30, 2013, the adjustment of $1.5 million to intangible assets acquired is associated with the correction of an error for a long-term revenue contract from the SmartSynch acquisition. See Note 5 for further discussion of the correction of the error and its impact on goodwill.

Intangible assets of our international subsidiaries are recorded in their respective functional currency; therefore, the carrying amounts of intangible assets increase or decrease, with a corresponding change in accumulated OCI, due to changes in foreign currency exchange rates.

Estimated future annual amortization expense is as follows:



Years ending December 31,	Estimated Annual Amortization
	(in thousands)
2013 (amount remaining at September 30, 2013)	$	10,598
2014	44,189
2015	35,440
2016	27,869
2017	20,718
Beyond 2017	65,816
Total intangible assets, net	$	204,630