Intangible assets and goodwill, net

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets at June 30, 2020 and December 31, 2019 are as follows:


	June 30, 2020
(In thousands)	(Unaudited)										December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Capitalized software development costs	$	136,118	$	(91,581)	$	44,537	$	132,789	$	(76,910)	$	55,879
Acquired technology	65,297		(62,776)		2,521		91,900		(87,917)		3,983
Patents	36,214		(25,296)		10,918		35,609		(23,993)		11,616
Other	37,684		(26,685)		10,999		44,490		(31,885)		12,605
Total	$	275,313	$	(206,338)	$	68,975	$	304,788	$	(220,705)	$	84,083

Software development costs capitalized for the three months ended June 30, 2020 and 2019 were $1.3 million and $2.2 million, respectively, and related amortization expense was $7.4 million and $6.9 million, respectively. For the six months ended June 30, 2020 and 2019, capitalized software development costs were $3.3 million and $4.6 million, respectively, and related amortization expense was $14.7 million and $13.8 million, respectively. Capitalized software development costs for the three months ended June 30, 2020 and 2019 included costs related to stock-based compensation of $0.1 million and $0.0 million, respectively. For the six months ended June 30, 2020 and 2019, capitalized software development costs included costs related to stock-based compensation of $0.2 million and $0.1 million, respectively. The related amounts in the table above are net of fully amortized assets.

Amortization of capitalized software development costs is computed on an individual product basis for those products available for market and is recognized based on the product’s estimated economic life, generally three to six years. Acquired technology and other intangible assets are amortized over their useful lives, which range from three to eight years. Patents are amortized using the straight-line method over their estimated period of benefit, generally 10 to 17 years. Total intangible assets amortization expenses were $9.3 million and $9.1 million for the three months ended June 30, 2020 and 2019, respectively, and $18.7 million and $18.1 million for the six months ended June 30, 2020 and 2019, respectively.

Goodwill

The carrying amount of goodwill as of June 30, 2020, was as follows:


	Amount
	(In thousands)
Balance as of December 31, 2019	$	262,242

Foreign currency translation impact	132
Divestiture	$	(7,221)
Balance as of June 30, 2020 (unaudited)	$	255,153

The excess purchase price over the fair value of assets acquired is recorded as goodwill. As businesses are acquired, we assign assets acquired (including goodwill) and liabilities assumed to either our existing reporting unit or a newly identified reporting unit as of the date of the acquisition. In the event a disposal group meets the definition of a business, goodwill is allocated to the disposal group based on the relative fair value of the disposal group to the related reporting unit. As we have one operating segment comprised of components with similar economic characteristics, we allocate goodwill to one reporting unit for goodwill impairment testing. Goodwill is tested for impairment on an annual basis, and between annual tests if indicators of potential impairment exist, using a fair-value-based approach based on the market capitalization of the reporting unit. Our annual impairment test is performed in the fourth quarter of each year.No impairment of goodwill was identified during the six months ended June 30, 2020 or the twelve months ended December 31, 2019.