Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

5. Goodwill and Intangible Assets

Goodwill

The activity related to goodwill for the six months ended June 30, 2015 was as follows:


Balance at December 31, 2014	$	161
Goodwill related to acquisition of Nexgen business		3,962

Balance at June 30, 2015	$	4,123

In February 2015, the Company acquired substantially all of the assets and assumed certain liabilities of Nexgen Wireless, Inc. As of June 30, 2015, the Company recorded goodwill of $4.0 million as part of provisional allocation of the purchase price. See Note 7 for additional information on the acquisition.

Intangible Assets

The Company amortizes intangible assets with finite lives on a straight-line basis over the estimated useful lives, which range from one to eight years. The summary of other intangible assets, net as of June 30, 2015 and December 31, 2014 are as follows:


	June 30, 2015						December 31, 2014
	Cost		Accumulated Amortization		Net Book Value		Cost		Accumulated Amortization		Net Book Value
Customer contracts and relationships	$	24,895	$	17,104	$	7,791	$	17,381	$	15,933	$	1,448
Patents and technology		10,114		7,004		3,110	$	6,781	$	6,507		274
Trademarks and trade names		4,960		3,524		1,436	$	3,988	$	3,152		836
Other		2,715		2,123		592	$	1,998	$	1,919		79

	$	42,684	$	29,755	$	12,929	$	30,148	$	27,511	$	2,637

The $10.3 million increase in the net book value of intangible assets at June 30, 2015 compared to December 31, 2014 reflects $12.5 million of intangible assets recorded for the purchase of the business from Nexgen, offset by restructuring charges of $0.4 million and amortization expense of $1.8 million recorded for the six months ended June 30, 2015. The restructuring charges related to the Company’s exit from the mobile towers product line. The Company wrote off the remaining intellectual property and a portion of the trade names and customer relationships from the acquisition of TelWorx in 2012. The amortization related to the assets recorded for the acquisition of the business from Nexgen was $0.7 million and $1.0 million for the three and six months ended June 30, 2015, respectively.

The assigned lives and weighted average amortization periods by intangible asset category is summarized below:


Intangible Assets	Assigned Life		Weighted Average Amortization Period
Customer contracts and relationships		4 to 6 years		5.0
Patents and technology		3 to 6 years		4.5
Trademarks and trade names		3 to 8 years		4.7
Other		1 to 6 years		4.4

The Company’s scheduled amortization expense for 2015 and the next five years is as follows:


2015	$	3,892
2016	$	2,842
2017	$	2,665
2018	$	2,587
2019	$	2,388
2020 & thereafter	$	394

- 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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