Intangible Assets

In connection with our acquisitions of Silicon Image in March 2015 and SiliconBlue in December 2011 we recorded identifiable intangible assets related to developed technology, customer relationships, licensed technology, patents, and in-process research and development based on guidance for determining fair value under the provisions of ASC 820, "Fair Value Measurements and Disclosures." Additionally, during fiscal 2015, we licensed additional third-party technology.

In September 2016, the founders of the HDMI consortium ("Founders"), of which we are a member, updated the Founders Agreement as part of an amendment process resulting in changes to our role as agent for the HDMI consortium and to the model for sharing adopter fee revenues. Lattice has historically served the role of the HDMI Licensing Agent via a wholly owned subsidiary, HDMI Licensing LLC. Under the terms of the amendment agreement, a new independent entity will act as the HDMI Licensing Agent and will be responsible for licensing and the distribution of royalties among Founders; Lattice will continue to serve the role of Agent until the appointment of the new licensing agent, which is expected to occur in fiscal 2017. As a result of the amended model for sharing revenue, we will be entitled to a reduced share of adopter fees paid by parties adopting the HDMI standard. We determined that this modification constituted an impairment indicator related to the intangible assets associated with future HDMI adopter fees. Our assessment of the new value of these intangible assets concluded that they had been impaired as of October 1, 2016, and we recorded a $7.9 million non-cash impairment charge in the Consolidated Statements of Operations. We do not anticipate any future cash expenditures related to this impairment. No impairment charges related to intangible assets were recorded for the first nine months of 2015 as no indicators of impairment were present.

The following table summarizes the details of our total purchased intangible assets as of the end of the third quarter of fiscal 2016:



	Weighted Average Amortization Period (in years)	Gross		Impairment			Accumulated Amortization			Intangible assets, net of amortization
(In thousands)										October 1, 2016
Developed technology	4.7	$	130,859	$	—		$	(48,153	)	$	82,706
Customer relationships	6.1	30,800		(7,866		)	(12,751		)	10,183
Licensed technology	3.3	2,127		—			(1,053		)	1,074
Patents	5	769		—			(241		)	528
Total identified finite-lived intangible assets		164,555		(7,866		)	(62,198		)	94,491
In-process research and development	indefinite	32,841		—			—			32,841
Total identified intangible assets		$	197,396	$	(7,866	)	$	(62,198	)	$	127,332

We do not believe there is any significant residual value associated with these intangible assets. We are amortizing the intangible assets using the straight-line method over their estimated useful lives. We recorded amortization expense on the Consolidated Statements of Operations as follows:



	Three Months Ended				Nine Months Ended
(In thousands)	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Research and development	$	186	$	223	$	559	$	507
Amortization of acquired intangible assets	8,260		8,941		25,292		20,824
	$	8,446	$	9,164	$	25,851	$	21,331

The annual expected amortization expense related to acquired intangible assets with finite lives is as follows:



(In thousands)	Amount
2016 (remaining 3 months)	$	8,119
2017	31,659
2018	25,777
2019	22,993
2020	5,290
Thereafter	653
Total	$	94,491