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Patents

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Identifiable Intangible Assets

PATENTS

Acacia’s only identifiable intangible assets at September 30, 2017 and December 31, 2016 are patents and patent rights. Patent-related accumulated amortization totaled $376,777,000 and $358,043,000 as of September 30, 2017 and December 31, 2016, respectively.

Acacia’s patents have remaining estimated economic useful lives ranging from one to seven years. The weighted-average remaining estimated economic useful life of Acacia’s patents is approximately four years. The following table presents the scheduled annual aggregate amortization expense as of September 30, 2017 (in thousands):



For the years ending December 31,
Remainder of 2017	$	5,443
2018	20,542
2019	18,527
2020	6,134
2021	5,261
Thereafter	11,453
	$	67,360

Acacia recorded impairment of patent-related intangible asset charges of $2,248,000 and $40,165,000 for the nine months ended September 30, 2017 and 2016, respectively. Impairment charges for the nine months ended September 30, 2017 primarily reflect reductions in expected estimated future net cash flows for certain patent portfolios that management determined it would no longer allocate resources to in future periods. Impairment charges for the nine months ended September 30, 2016 were primarily comprised of the write-off of the remaining carrying value of the Adaptix portfolio due to a reduction in expected estimated future net cash flows, and the write-off of certain patent portfolios that management determined it would no longer allocate future resources to in future periods. The impairment charges consisted of the excess of the asset’s carrying value over its estimated fair value.

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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