Intangible Asset and Goodwill

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Asset and Goodwill

Intangible Assets and Goodwill

Goodwill

The following tables present goodwill information for the nine months ended September 30, 2019 (in thousands):

	As of December 31, 2018		Additions to Goodwill (1)		Reclassifications to Assets Held for Sale  (2)			Effect of Exchange Rates  (3)			As of September 30, 2019
Total goodwill	$	207,178	$	11,344	$	(52,455	)	$	(1,579	)	$	164,488

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(1) During the three months ended September 30, 2019, the Company acquired Northwest Logic, Inc. (“Northwest Logic”) which resulted in the Company recognizing additional goodwill. Refer to Note 18, “Acquisition,” for additional information.

(2) Refer to Note 16, “Assets and Liabilities Held for Sale,” for additional information.

(3) Effect of exchange rates relates to foreign currency translation adjustments for the period.

	As of
	September 30, 2019
	Gross Carrying Amount		Accumulated Impairment Losses			Reclassifications to Assets Held for Sale (1)			Net Carrying Amount
Total goodwill	$	238,713	$	(21,770	)	$	(52,455	)	$	164,488

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(1) Refer to Note 16, “Assets and Liabilities Held for Sale,” for additional information.

Intangible Assets, Net

The components of the Company’s intangible assets as of September 30, 2019 and December 31, 2018 were as follows:

		As of September 30, 2019
(In thousands)	Useful Life	Gross Carrying  Amount (1) (2)		Accumulated  Amortization (1) (2)			Net Carrying  Amount
Existing technology	3 to 10 years	$	241,189	$	(209,692	)	$	31,497
Customer contracts and contractual relationships	0.5 to 10 years	35,393		(33,128		)	2,265
Non-compete agreements and trademarks	3 years	300		(300		)	—
In-process research and development	Not applicable	1,600		—			1,600
Total intangible assets		$	278,482	$	(243,120	)	$	35,362

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(1) As of September 30, 2019, the Company had reclassified approximately $19.3 million of net intangible assets to assets held for sale. Refer to Note 16, “Assets and Liabilities Held for Sale,” for additional information.

(2) During the three months ended September 30, 2019, the Company acquired Northwest Logic which resulted in the Company recognizing additional intangible assets. Refer to Note 18, “Acquisition,” for additional information.

		As of December 31, 2018
(In thousands)	Useful Life	Gross Carrying  Amount (1)		Accumulated  Amortization (1)			Net Carrying  Amount
Existing technology	3 to 10 years	$	258,903	$	(213,824	)	$	45,079
Customer contracts and contractual relationships	1 to 10 years	67,667		(54,410		)	13,257
Non-compete agreements and trademarks	3 years	300		(300		)	—
In-process research and development	Not applicable	1,600		—			1,600
Total intangible assets		$	328,470	$	(268,534	)	$	59,936

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(1) The changes in gross carrying amount and accumulated amortization reflect the effects of exchange rates during the period.

During the three and nine months ended September 30, 2019, the Company acquired Northwest Logic which resulted in the Company recognizing additional intangible assets. Refer to Note 18, “Acquisition,” for additional information. During the three and nine ended September 30, 2018, the Company did not purchase or sell any intangible assets.

Amortization expense for intangible assets for the three and nine months ended September 30, 2019 was $3.2 million and $13.1 million, respectively. Amortization expense for intangible assets for the three and nine months ended September 30, 2018 was $5.1 million and $24.4 million, respectively. The estimated future amortization of intangible assets as of September 30, 2019 was as follows (in thousands):

Years Ending December 31:	Amount
2019 (remaining three months)	$	3,589
2020	13,824
2021	9,831
2022	2,881
2023	2,360
Thereafter	1,277
Total amortizable purchased intangible assets	$	33,762
In-process research and development	1,600
Total intangible assets	$	35,362

It is reasonably possible that the businesses could perform significantly below the Company’s expectations or a deterioration of market and economic conditions could occur. This would adversely impact the Company’s ability to meet its projected results, which could cause the goodwill of its reporting unit or long-lived assets in any of its asset groups to become impaired. Significant differences between these estimates and actual cash flows could materially affect the Company’s future financial

results. If the Company determines that its goodwill or long-lived assets are impaired, it would be required to record a non-cash charge that could have a material adverse effect on its results of operations and financial position.