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Intangible Assets and Liabilities
 9 Months Ended
Sep. 30, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets and Liabilities Intangible Assets and Liabilities

The gross carrying amount and accumulated amortization (accretion) of our intangible assets and liabilities, other than goodwill, were as follows:
 
September 30, 2018
 
December 31, 2017
 
Gross
 
Accumulated
(Amortization) Accretion
 
Net
 
Gross
 
Accumulated
(Amortization) Accretion
 
Net
 
(in thousands)
Intangible Assets
 
 
 
 
 
 
 
 
 
 
 
Core-developed technology
$
515,949

 
$
(427,069
)
 
$
88,880

 
$
429,548

 
$
(399,969
)
 
$
29,579

Customer contracts and relationships
385,148

 
(210,735
)
 
174,413

 
258,586

 
(197,582
)
 
61,004

Trademarks and trade names
79,739

 
(69,376
)
 
10,363

 
70,056

 
(66,004
)
 
4,052

Other
12,602

 
(11,166
)
 
1,436

 
11,661

 
(11,068
)
 
593

Total intangible assets subject to amortization
$
993,438

 
$
(718,346
)
 
$
275,092

 
$
769,851

 
$
(674,623
)
 
$
95,228

In-process research and development
3,100

 
—

 
3,100

 
—

 
—

 
—

Total intangible assets
$
996,538

 
$
(718,346
)
 
$
278,192

 
$
769,851

 
$
(674,623
)
 
$
95,228

 
 
 
 
 
 
 
 
 
 
 
 
Intangible Liabilities
 
 
 
 
 
 
 
 
 
 
 
Customer contracts and relationships
$
(23,900
)
 
$
3,913

 
$
(19,987
)
 
$
—

 
$
—

 
$
—



A summary of intangible assets and liabilities activity is as follows:
 
Nine Months Ended September 30,
 
2018
 
2017
 
(in thousands)
Beginning balance, intangible assets, gross
$
769,851

 
$
669,896

Intangible assets acquired
242,039

 
36,500

Effect of change in exchange rates
(15,352
)
 
57,640

Ending balance, intangible assets, gross
$
996,538

 
$
764,036

 
 
 
 
Beginning balance, intangible liabilities, gross
$
—

 
$
—

Intangible liabilities acquired
(23,900
)
 
—

Effect of change in exchange rates
—

 
—

Ending balance, intangible liabilities, gross
$
(23,900
)
 
$
—



On January 5, 2018, we completed our acquisition of Silver Spring Networks, Inc. (SSNI) by purchasing 100% of the voting stock. Intangible assets acquired in 2018 are primarily based on the preliminary purchase price allocation relating to this acquisition. Acquired intangible assets include in-process research and development (IPR&D), which is not amortized until such time as the associated development projects are completed. Of these projects, $11.3 million were completed during the nine months ended September 30, 2018 and are included in core-developed technology. The remaining IPR&D is expected to be completed in the next year. Acquired intangible liabilities reflect the present value of the projected cash outflows for an existing contract where remaining costs are expected to exceed projected revenues. Refer to Note 17 for additional information regarding this acquisition.

Estimated future annual amortization (accretion) is as follows:
Year Ending December 31,
 
Amortization
 
Accretion
 
Estimated Annual Amortization, net
 
 
(in thousands)
2018 (amount remaining at September 30, 2018)
 
$
19,547

 
$
(1,304
)
 
$
18,243

2019
 
72,681

 
(8,233
)
 
64,448

2020
 
52,727

 
(8,028
)
 
44,699

2021
 
37,314

 
(1,963
)
 
35,351

2022
 
27,160

 
(459
)
 
26,701

Beyond 2022
 
65,663

 
—

 
65,663

Total intangible assets subject to amortization (accretion)
 
$
275,092

 
$
(19,987
)
 
$
255,105



We have recognized $18.0 million and $5.6 million of net amortization of intangible assets for the three months ended September 30, 2018 and 2017, respectively, and $53.7 million and $15.1 million for the nine months ended September 30, 2018 and 2017, respectively within operating expenses in the Consolidated Statement of Operations. These expenses relate to intangible assets and liabilities acquired as part of a business combination.