GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

Goodwill

Goodwill represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. The Company has two reporting units, Video and Cable Access.

The Company tests for goodwill impairment at the reporting unit level on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company’s annual goodwill impairment test is performed in the fiscal fourth quarter, with a testing date at the end of fiscal October. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies.

The changes in the Company’s carrying amount of goodwill are as follows (in thousands):



	Video			Cable Access			Total
Balance as of December 31, 2016	$	176,519		$	60,760		$	237,279
Foreign currency translation adjustment	5,493			55			5,548
Balance as of December 31, 2017	$	182,012		$	60,815		$	242,827
Foreign currency translation adjustment	(2,173		)	(36		)	(2,209		)
Balance as of December 31, 2018	$	179,839		$	60,779		$	240,618

The Company has not recorded any impairment charges related to goodwill for any prior periods. If future economic conditions are different than those projected by management, future impairment charges may be required.

Intangible Assets, Net

The following table provides a summary of the Company’s identified intangible assets (in thousands):



		December 31, 2018							December 31, 2017
	Weighted Average Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed core technology	1.2	$	31,707	$	(25,576	)	$	6,131	$	31,707	$	(20,396	)	$	11,311
Customer relationships/contracts	2.2	44,650		(38,146		)	6,504		44,819		(35,205		)	9,614
Trademarks and tradenames	1.2	623		(441		)	182		654		(300		)	354
Maintenance agreements and related relationships	N/A	5,500		(5,500		)	—		5,500		(5,500		)	—
Order Backlog	N/A	3,112		(3,112		)	—		3,177		(3,177		)	—
Total identifiable intangibles		$	85,592	$	(72,775	)	$	12,817	$	85,857	$	(64,578	)	$	21,279

Amortization expense for the identifiable intangible assets was allocated as follows (in thousands):



	Year Ended December 31,
	2018		2017		2016
Included in cost of revenue	$	5,180	$	5,180	$	4,434
Included in operating expenses	3,187		3,142		10,402
Total amortization expense	$	8,367	$	8,322	$	14,836

The estimated future amortization expense of identifiable intangible assets with definite lives as of December 31, 2018 is as follows (in thousands):



	Cost of Revenue		Operating Expenses		Total
Year ended December 31,
2019	$	5,180	$	3,158	$	8,338
2020	951		3,028		3,979
2021	—		500		500
Total future amortization expense	$	6,131	$	6,686	$	12,817