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Intangible Assets and Liabilities
12 Months Ended
Dec. 31, 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, are as follows:
 
December 31, 2018
 
December 31, 2017
 
Gross Assets
 
Accumulated
(Amortization) Accretion
 
Net
 
Gross Assets
 
Accumulated
(Amortization) Accretion
 
Net
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
Intangible Assets
 
 
 
 
 
 
 
 
 
 
 
Core-developed technology
$
507,100

 
$
(429,955
)
 
$
77,145

 
$
429,548

 
$
(399,969
)
 
$
29,579

Customer contracts and relationships
379,614

 
(212,538
)
 
167,076

 
258,586

 
(197,582
)
 
61,004

Trademarks and trade names
78,746

 
(69,879
)
 
8,867

 
70,056

 
(66,004
)
 
4,052

Other
12,600

 
(11,205
)
 
1,395

 
11,661

 
(11,068
)
 
593

Total intangible assets subject to amortization
978,060

 
(723,577
)
 
254,483

 
769,851

 
(674,623
)
 
95,228

In-process research and development
3,100

 
 
 
3,100

 

 
 
 

Total intangible assets
$
981,160

 
$
(723,577
)
 
$
257,583

 
$
769,851

 
$
(674,623
)
 
$
95,228

 
 
 
 
 
 
 
 
 
 
 
 
Intangible Liabilities
 
 
 
 
 
 
 
 
 
 
 
Customer contracts and relationships
$
(23,900
)
 
$
5,217

 
$
(18,683
)
 
$

 
$

 
$



A summary of the intangible assets and liabilities account activity is as follows:
 
Year Ended December 31,
 
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
(30,730
)
 
63,455

Ending balance, intangible assets, gross
$
981,160

 
$
769,851

 
 
 
 
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 SSNI by purchasing 100% of the voting stock. Intangible assets acquired in 2018 are primarily based on the 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 twelve months ended December 31, 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: Business Combinations" for additional information regarding this acquisition.

A summary of intangible asset amortization expense is as follows:

 
Year Ended December 31,
 
2018
 
2017
 
2016
 
 
 
 
 
 
 
(in thousands)
Amortization expense
$
71,713

 
$
20,785

 
$
25,112



We recognized net amortization of intangible assets for the year ended December 31, 2018, 2017 and 2016, respectively within operating expenses in the Consolidated Statements of Operations. These expenses relate to intangible assets and liabilities acquired as part of a business combination.

Estimated future annual amortization (accretion) is as follows:

Year Ending December 31,
Amortization
 
Accretion
 
Estimated Annual Amortization, net
 
 
 
 
 
 
 
(in thousands)
2019
$
72,512

 
$
(8,233
)
 
$
64,279

2020
52,591

 
(8,028
)
 
44,563

2021
37,124

 
(1,963
)
 
35,161

2022
26,950

 
(459
)
 
26,491

2023
19,363

 

 
19,363

Beyond 2023
45,943

 

 
45,943

Total intangible assets subject to amortization
$
254,483

 
$
(18,683
)
 
$
235,800