Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill And Other Intangible Assets [Abstract]

Note 5—Goodwill and Other Intangible Assets

The changes each year in goodwill allocated to the Company’s reportable segments were as follows:

(in thousands)			Americas		Asia		Total
	Goodwill as of December 31, 2014	$	7,868	$	38,102	$	45,970
	Acquisition		153,320		—		153,320
	Goodwill as of December 31, 2015		161,188		38,102		199,290
	Purchase accounting adjustments		(7,674)		—		(7,674)
	Goodwill as of December 31, 2016	$	153,514	$	38,102	$	191,616
	Goodwill as of December 31, 2017	$	153,514	$	38,102	$	191,616

The purchase accounting adjustments in 2016 related to the Secure Acquisition were based on management’s estimates resulting from review of information obtained after the acquisition that related to facts and circumstances that existed at the acquisition date. See Note 2.

Other assets consist primarily of acquired identifiable intangible assets and capitalized purchased software costs. Acquired identifiable intangible assets as of December 31, 2017 and 2016 were as follows:

			Gross				Net
			Carrying	Accumulated			Carrying
(in thousands)			Amount	Amortization			Amount
	Customer relationships	$	100,200	$	(34,372)	$	65,828
	Purchased software costs		35,328		(29,612)		5,716
	Technology licenses		28,800		(17,887)		10,913
	Trade names and trademarks		7,800		—		7,800
	Other		868		(261)		607
	Intangible assets, December 31, 2017	$	172,996	$	(82,132)	$	90,864

			Gross				Net
			Carrying	Accumulated			Carrying
(in thousands)			Amount	Amortization			Amount
	Customer relationships	$	100,053	$	(27,883)	$	72,170
	Purchased software costs		31,582		(28,508)		3,074
	Technology licenses		26,800		(14,189)		12,611
	Trade names and trademarks		7,800		—		7,800
	Other		868		(237)		631
	Intangible assets, December 31, 2016	$	167,103	$	(70,817)	$	96,286

Customer relationships are being amortized on a straight-line basis over a period of 10 to 14 years. Capitalized purchased software costs are amortized straight-line over the estimated useful life of the related software, which ranges from 2 to 10 years. Technology licenses are being amortized over their estimated useful lives in proportion to the economic benefits consumed. During 2017, 2016 and 2015, $3.7 million, $1.9 million and $0.9 million, respectively, of purchased software costs were capitalized. During 2015, in connection with the Secure Acquisition, the Company acquired trade names and trademarks that have been determined to have an indefinite life. Amortization on the statements of cash flow for 2017, 2016 and 2015 was as follows:


		Year Ended December 31,
(in thousands)		2017		2016		2015
Amortization of intangible assets	$	10,065	$	11,838	$	4,962
Amortization of capitalized purchased software costs		1,078		1,147		1,785
Amortization of debt costs		861		756		103
	$	12,004	$	13,741	$	6,850

The increased amortization of intangible assets in 2016 reflects the impact of the Secure Acquisition. See Note 2.

The estimated future amortization expense of acquired intangible assets for each of the next five years is as follows (in thousands):

Year ending December 31,		Amount
	2018	$ 11,069
	2019	10,999
	2020	10,198
	2021	7,160
	2022	7,136

- 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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