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 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. No impairment indicators were identified as of June 28, 2019.

The changes in the carrying amount of goodwill for the six months ended June 28, 2019 were as follows (in thousands):



	Video			Cable Access			Total
Balance as of December 31, 2018	$	179,839		$	60,779		$	240,618
Foreign currency translation adjustment, net	(282		)	(1		)	(283		)
Balance as of June 28, 2019	$	179,557		$	60,778		$	240,335

Intangible Assets, Net

The following is a summary of intangible assets, net (in thousands):



		June 28, 2019							December 31, 2018
	Weighted Average Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed core technology	0.7	$	31,708	$	(28,167	)	$	3,541	$	31,707	$	(25,576	)	$	6,131
Customer relationships/contracts	1.7	44,628		(39,632		)	4,996		44,650		(38,146		)	6,504
Trademarks and trade names	0.7	618		(515		)	103		623		(441		)	182
Maintenance agreements and related relationships	n/a	5,500		(5,500		)	—		5,500		(5,500		)	—
Order backlog	n/a	3,104		(3,104		)	—		3,112		(3,112		)	—
Total identifiable intangibles, net		$	85,558	$	(76,918	)	$	8,640	$	85,592	$	(72,775	)	$	12,817

Amortization expense for the identifiable purchased intangible assets for the three and six months ended June 28, 2019 and June 29, 2018 was allocated as follows (in thousands):



	Three months ended				Six months ended
	June 28, 2019		June 29, 2018		June 28, 2019		June 29, 2018
Included in cost of revenue	$	1,295	$	1,295	$	2,590	$	2,590
Included in operating expenses	784		800		1,572		1,604
Total amortization expense	$	2,079	$	2,095	$	4,162	$	4,194

The estimated future amortization expense of purchased intangible assets with definite lives is as follows (in thousands):



	Cost of Revenue		Operating Expenses		Total
Year ended December 31,
2019 (remaining six months)	$	2,590	$	1,576	$	4,166
2020	951		3,023		3,974
2021	—		500		500
Total future amortization expense	$	3,541	$	5,099	$	8,640