Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets Goodwill and Intangibles Assets (Notes)

v3.5.0.2
Goodwill and Intangible Assets Goodwill and Intangibles Assets (Notes)
 6 Months Ended
Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill were as follows:
 
Carrying Value
 
(in thousands)
Balance as of January 1, 2016
$
49,779

Acquisition of wireless infrastructure access line business
6,935

Balance as of June 30, 2016
$
56,714



Goodwill is not amortized, but is tested for impairment using a two-step method on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair market value of the reporting unit. No goodwill impairment was recognized for three and six months ended June 30, 2016 and 2015.
Acquired Intangibles
Finite-lived Intangible Assets
The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions and technology licenses purchased, which continue to be amortized:
 
 
 
June 30, 2016
 
December 31, 2015
 
Weighted
Average
Useful Life
(in Years)
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
 
 
(in thousands)
Licensed technology
3
 
$
3,311

 
$
(2,876
)
 
$
435

 
$
2,921

 
$
(2,725
)
 
$
196

Developed technology
7
 
55,600

 
(8,214
)
 
47,386

 
47,000

 
(4,652
)
 
42,348

Trademarks and trade names
7
 
1,700

 
(283
)
 
1,417

 
1,700

 
(162
)
 
1,538

Customer relationships
5
 
7,800

 
(1,290
)
 
6,510

 
4,700

 
(627
)
 
4,073

Covenants non-compete
3
 
100

 
(6
)
 
94

 
—

 
—

 
—

Backlog
1
 
24,700

 
(24,367
)
 
333

 
24,200

 
(24,200
)
 
—

 
 
 
$
93,211

 
$
(37,036
)
 
$
56,175

 
$
80,521

 
$
(32,366
)
 
$
48,155


Amortization expense related to intangible assets was $2.6 million and $4.7 million in the three and six months ended June 30, 2016, respectively, and $9.2 million and $9.4 million in the three and six months ended June 30, 2015, respectively.

The following table sets forth the activity during the six months ended June 30, 2016 related to finite-lived intangible assets resulting from the acquisition of the wireless access line business, other additions and amortization of acquired finite-lived intangible assets:
 
Carrying Amount
 
(in thousands)
Balance as of December 31, 2015
$
48,155

Acquisition of wireless infrastructure access line business
12,300

Other additions
390

Amortization
(4,670
)
Balance as of June 30, 2016
$
56,175



The following table presents future amortization of the Company’s finite-lived intangible assets at June 30, 2016:
 
Amortization
 
(in thousands)
2016 (six months)
$
5,597

2017
10,485

2018
10,468

2019
9,159

2020
8,499

2021
8,122

Thereafter
3,845

Total
$
56,175


Indefinite-lived Intangible Assets
The following table sets forth the activity of the Company’s indefinite-lived intangible assets, which consists of in-process research and development technology:
 
Gross Carrying Amount
 
(in thousands)
Balance as of December 31, 2015
$
3,200

Acquisition of wireless infrastructure access line business
1,300

Balance as of June 30, 2016
$
4,500



The Company regularly reviews the carrying amount of its long-lived assets, as well as the useful lives, to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives. An impairment loss would be recognized when the sum of the expected future undiscounted net cash flows is less than the carrying amount of the asset. Should impairment exist, the impairment loss would be measured based on the excess of the carrying amount of the asset over the asset’s fair value. No impairment losses related to long-lived assets were recognized for the three and six months ended June 30, 2016 and 2015.