XML 38 R12.htm IDEA: XBRL DOCUMENT

Patents

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Identifiable Intangible Assets

PATENTS

Acacia’s only identifiable intangible assets at September 30, 2015 and December 31, 2014 are patents and patent rights. Patent-related accumulated amortization totaled $206,519,000 and $166,565,000 as of September 30, 2015 and December 31, 2014, respectively.

Acacia’s patents have remaining estimated economic useful lives ranging from one to nine years. The weighted-average remaining estimated economic useful life of Acacia’s patents is approximately six years. The following table presents the scheduled annual aggregate amortization expense as of September 30, 2015 (in thousands):



For the years ending December 31,
Remainder of 2015	$	12,732
2016	49,880
2017	48,870
2018	44,614
2019	38,981
Thereafter	54,409
	$	249,486

For the nine months ended September 30, 2015 and 2014, Acacia paid patent related investment costs, including up-front patent portfolio advances and previously accrued milestone payments related to patent related investments made in prior periods, totaling $19,504,000 and $24,518,000, respectively. The underlying patents have estimated economic useful lives of approximately two to ten years.

During the nine months ended September 30, 2014, certain Acacia operating subsidiaries elected to sell their rights to patent portfolios, resulting in the acceleration of amortization expense for the patent-related assets totaling $2,702,000. Proceeds from the sale of patents and the related gain on sale for the nine months ended September 30, 2014 were $3,500,000 and $833,000, respectively. Included in amortization of patents for the nine months ended September 30, 2015 and 2014, was accelerated amortization related to the full or partial write-down of patent portfolios, due primarily to a reduction in expected estimated future net cash flows, totaling $258,000 and $2,565,000, respectively.

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.

+ References + Details