Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, Net and Goodwill

v2.4.0.8
Intangible Assets, Net and Goodwill
9 Months Ended
Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net and Goodwill
INTANGIBLE ASSETS, NET AND GOODWILL
Intangible assets that are determined to have finite lives include patents, purchased technology, customer relationships and order backlog and are amortized over their estimated useful lives, which range from less than one year to approximately 10 years, and are measured for impairment only when events or circumstances indicate the carrying value may be impaired. Goodwill and intangible assets with indefinite useful lives, including trademarks and trade names, are not amortized but are periodically evaluated for impairment.
Intangible assets
The following table summarizes the Company’s identifiable intangible assets balance (in thousands):
 
September 30,
2014
 
December 31,
2013
 
September 30,
2013
Intangible assets subject to amortization:
 
 
 
 
 
Patents and purchased technology
$
14,198

 
$
14,198

 
$
14,198

Customer relationships
23,000

 

 

Order backlog
3,500

 

 

Gross carrying amount
40,698

 
14,198

 
14,198

Accumulated amortization:
 
 
 
 
 
Patents and purchased technology
(6,329
)
 
(5,331
)
 
(4,999
)
Customer relationships
(1,272
)
 

 

Order backlog
(2,334
)
 

 

Total accumulated amortization
(9,935
)
 
(5,331
)
 
(4,999
)
Net carrying amount
30,763

 
8,867

 
9,199

Intangible assets not subject to amortization
115,421

 
27,421

 
27,421

Intangible assets, net
$
146,184

 
$
36,288

 
$
36,620


Amortization expense for intangible assets subject to amortization was $3,037,000 and $332,000 for the three months ended September 30, 2014 and 2013, respectively, and was $4,604,000 and $998,000 for the nine months ended September 30, 2014 and 2013, respectively. Annual amortization expense is estimated to be $7,056,000 in 2014, $5,147,000 in 2015 and 2016, $3,883,000 in 2017 and $2,980,000 in 2018.
Goodwill
Goodwill was $68,594,000 at September 30, 2014, and $14,438,000 at December 31, 2013 and September 30, 2013. During the nine months ended September 30, 2014, goodwill increased $54,156,000, net of a remeasurement period adjustment of $663,000, related to the prAna acquisition (see Note 3).