Intangible Assets

The gross carrying amount and accumulated amortization of our intangible assets, other than goodwill, were as follows:



	June 30, 2014							December 31, 2013
	Gross Assets		Accumulated Amortization			Net		Gross Assets		Accumulated Amortization			Net
	(in thousands)
Core-developed technology	$	426,732	$	(366,898	)	$	59,834	$	428,890	$	(356,017	)	$	72,873
Customer contracts and relationships	289,640		(181,738		)	107,902		291,185		(173,952		)	117,233
Trademarks and trade names	72,745		(68,117		)	4,628		73,117		(67,449		)	5,668
Other	11,586		(11,023		)	563		11,089		(11,023		)	66
Total intangible assets	$	800,703	$	(627,776	)	$	172,927	$	804,281	$	(608,441	)	$	195,840

A summary of intangible asset activity is as follows:



	Six Months Ended June 30,
	2014			2013
	(in thousands)
Beginning balance, intangible assets, gross	$	804,281		$	802,540
Intangible assets acquired	497			(1,500		)
Effect of change in exchange rates	(4,075		)	(16,894		)
Ending balance, intangible assets, gross	$	800,703		$	784,146

For the six months ended June 30, 2013, the adjustment of $1.5 million to intangible assets acquired is associated with the correction of an error for a long-term revenue contract from the SmartSynch acquisition, which occurred in 2012. During the second quarter of 2013, we finalized the purchase price allocation related to the SmartSynch acquisition, which was completed on May 1, 2012, and recorded certain adjustments that are reflected as Intangible assets acquired. These adjustments primarily affected the fair value calculation of certain accrued liabilities associated with specific contracts. Among these adjustments was the correction of an error associated with a long-term revenue contract acquired from SmartSynch. In May 2013, we determined that certain manufacturing costs were not reflected in the model used to value this contract as acquisition. Once these costs were properly added to the total cost and profitability estimates, we determined the total contract would result in a loss over the contract term. Previously, we had recognized a customer relationship intangible asset of $1.5 million associated with this contract, with amortization scheduled to begin in 2014 based on the contract's original projected cash flow. Since the contract is in an overall loss position, we determined that the intangible asset had no value. We reduced the value of this intangible asset to zero with a corresponding adjustment to goodwill.

Intangible assets of our international subsidiaries are recorded in their respective functional currency; therefore, the carrying amounts of intangible assets increase or decrease, with a corresponding change in accumulated OCI, due to changes in foreign currency exchange rates.

Estimated future annual amortization expense is as follows:



Years ending December 31,	Estimated Annual Amortization
	(in thousands)
2014 (amount remaining at June 30, 2014)	$	22,200
2015	35,643
2016	28,062
2017	20,895
2018	14,674
Beyond 2018	51,453
Total intangible assets subject to amortization	$	172,927