Goodwill and Purchased Intangible Assets

12 Months Ended

Dec. 31, 2016

Identifiable Intangible Assets [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Purchased Intangible Assets:

Goodwill

There were no changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015.

Purchased Intangible Assets

Purchased intangible assets as of December 31, 2016 and 2015 are as follows:



	Gross Carrying Amount		Accumulated Amortization		Net
December 31, 2016
Finite-lived intangibles:
Developed technology	$	65,527	$	56,986	$	8,541
Customer and distributor relationships	9,560		8,514		1,046
Trade names	4,361		3,675		686
Total identifiable intangible assets	$	79,448	$	69,175	$	10,273

December 31, 2015
Finite-lived intangibles:
Developed technology	$	65,527	$	55,110	$	10,417
Customer and distributor relationships	9,560		8,170		1,390
Trade names	4,361		3,575		786
Total identifiable intangible assets	$	79,448	$	66,855	$	12,593

Intangible asset amortization expense amounted to $2,320, $2,145 and $2,422 for the years ended December 31, 2016, 2015 and 2014, respectively. Assuming no change in the gross carrying value of identifiable intangible assets and estimated lives, estimated amortization expense will be $1,933 for 2017, $1,496 for 2018, $1,496 for 2019, $1,294 for 2020, and $546 for 2021.

In September 2015, the Company announced that it purchased Stella Alliance, LLC, a Massachusetts-based semiconductor inspection technology intellectual property portfolio company. The acquired intellectual property was integrated into the Company’s process control group. The Company accounted for the transaction as an asset acquisition and assigned a fair value to the intellectual property of $5,696, which is included in the asset class of developed technology. The intellectual property is being amortized on a straight line basis over its estimated useful life of fifteen years.

- 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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