GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2016

7.	GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents the changes in the carrying amount of goodwill:


(in thousands)	2016

Balance as of January 1,	$	46,776

Goodwill acquired during the year		27,311

Currency translation adjustments		(216	)


Balance as of September 30,	$	73,871

Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives.


(in thousands)	Range of Useful Lives		Cost		Accumulated Amortization			Net Book Value

As of September 30, 2016

Customer related intangibles		4-10 years	$	63,134	$	(35,714	)	$	27,420

Technology		3-10 years		58,942		(38,908	)		20,034

Other intangibles		3 years		5,361		(5,353	)		8


Total			$	127,437	$	(79,975	)	$	47,462




As of December 31, 2015

Customer related intangibles		4-9 years	$	49,546	$	(30,465	)	$	19,081

Technology		3-9 years		48,342		(34,282	)		14,060

Other intangibles		3 years		5,361		(5,084	)		277


Total			$	103,249	$	(69,831	)	$	33,418

Amortization expense of acquired intangibles is reflected in the Company’s unaudited condensed consolidated statements of operations as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2016		2015		2016		2015

Cost of revenue	$	1,642	$	1,351	$	4,626	$	4,041

Selling and marketing		1,867		1,537		5,274		4,602

General and administrative		90		91		268		593


Total amortization expense	$	3,599	$	2,979	$	10,168	$	9,236

Amortization of intangibles is estimated to be recorded over their remaining useful lives as follows:


(in thousands) as of September 30, 2016	Future estimated amortization expense

Remainder of 2016	$	3,267

2017		12,335

2018		11,335

2019		5,543

2020		2,647

2021 and thereafter		12,335


	$	47,462

- Definition

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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