GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS:

There were no changes in the carrying amount of goodwill during the nine months ended September 30, 2014.

Intangible assets consist primarily of developed technology, acquired licenses, customer relationships, trade name, in-process research and development and patent rights, and are reported net of accumulated amortization. The Company amortizes the cost of all intangible assets over the shorter of the estimated useful life or the term of the developed technology, acquired licenses, customer relationships, trade name and patent rights, which range from two to 12 years, with the exception of $4.7 million of in-process research and development and $1.3 million for the purchase of an internet domain name. In-process research and development is assessed for impairment until the development is completed and products are available for sale, at which time the Company will begin to amortize the in-process research and development. The Company does not expect the amortization of in-process research and development to begin in 2014. The Company acquired the rights to the internet domain name www.power.com, which will become the Company's primary domain name; the cost to acquire the domain name has been recorded as an intangible asset and will not be amortized as it has an indefinite useful life. Amortization for acquired intangible assets was approximately $1.3 million and $1.8 million in the three months ended September 30, 2014 and 2013, respectively, and $4.7 million and $5.5 million in the nine months ended September 30, 2014 and 2013, respectively. The Company does not believe there is any significant residual value associated with the following intangible assets:



	September 30, 2014							December 31, 2013
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
	(in thousands)
Domain name	$	1,261	$	—		$	1,261	$	—	$	—		$	—
In-process research and development	4,690		—			4,690		4,690		—			4,690
Technology licenses	3,000		(2,550		)	450		3,000		(2,325		)	675
Patent rights	1,949		(1,949		)	—		1,949		(1,949		)	—
Developed technology	26,670		(7,182		)	19,488		26,670		(5,247		)	21,423
Customer relationships	17,610		(6,626		)	10,984		17,610		(4,664		)	12,946
Trade name	3,600		(3,600		)	—		3,600		(3,000		)	600
Total intangible assets	$	58,780	$	(21,907	)	$	36,873	$	57,519	$	(17,185	)	$	40,334

The estimated future amortization expense related to definite-lived intangible assets at September 30, 2014, is as follows:



Fiscal Year		Estimated Amortization (in thousands)
2014	(remaining 3 months)	$	1,350
2015		5,009
2016		4,394
2017		3,994
2018		3,746
Thereafter		12,429
Total (1)		$	30,922

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(1)	The total above excludes $4.7 million of in-process research and development that will be amortized upon completion of development over the estimated useful life of the technology.

- 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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