Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, Net and Goodwill

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Intangible Assets, Net and Goodwill
9 Months Ended
Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net and Goodwill
INTANGIBLE ASSETS, NET
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,
2015
 
December 31,
2014
 
September 30,
2014
Intangible assets subject to amortization:
 
 
 
 
 
Patents and purchased technology
$
14,198

 
$
14,198

 
$
14,198

Customer relationships
23,000

 
23,000

 
23,000

Order backlog

 

 
3,500

Gross carrying amount
37,198

 
37,198

 
40,698

Accumulated amortization:
 
 
 
 
 
Patents and purchased technology
(7,659
)
 
(6,661
)
 
(6,329
)
Customer relationships
(5,089
)
 
(2,227
)
 
(1,272
)
Order backlog

 

 
(2,334
)
Total accumulated amortization
(12,748
)
 
(8,888
)
 
(9,935
)
Net carrying amount
24,450

 
28,310

 
30,763

Intangible assets not subject to amortization
115,421

 
115,421

 
115,421

Intangible assets, net
$
139,871

 
$
143,731

 
$
146,184


Amortization expense for intangible assets subject to amortization was $1,287,000 and $3,037,000 for the three months ended September 30, 2015 and 2014, respectively, and was $3,860,000 and $4,604,000 for the nine months ended September 30, 2015 and 2014, respectively.
Annual amortization expense is estimated to be as follows for the years 2015-2019 (in thousands):
2015
$
5,147

2016
5,147

2017
3,883

2018
2,980

2019
2,980