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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

9. Goodwill and Other Intangible Assets

 

The changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017, are as follows:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2018

 

 

2017

 

Opening balance

 

$

8,469

 

 

$

2,161

 

Additions

 

 

6,215

 

 

 

6,308

 

Acquisition adjustments

 

 

(901

)

 

 

—

 

Goodwill

 

$

13,783

 

 

$

8,469

 

 

Our 2018 acquisition of Erado (as defined herein) resulted in the addition to our goodwill the increase to our goodwill in 2018. Our acquisition adjustments to goodwill reflect the appropriate reallocation of excess purchase price from goodwill to acquired assets and liabilities related to our 2017 Greenview and EMS (as defined herein) purchases. We evaluate goodwill for impairment annually in the fourth quarter, or when there is reason to believe that the value has been diminished or impaired. There were no impairment indicators to the goodwill recorded as of December 31, 2018.

Our other intangible assets consist of the following:

 

 

 

December 31, 2018

 

(In thousands)

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Amount

 

Internal use software

 

$

1,189

 

 

$

(162

)

 

$

1,027

 

Internally-developed hosting arrangement

 

 

1,520

 

 

 

(77

)

 

 

1,443

 

Trademarks and other

 

 

691

 

 

 

(113

)

 

 

578

 

Technology

 

 

7,604

 

 

 

(2,678

)

 

 

4,926

 

Customer relationships

 

 

7,870

 

 

 

(593

)

 

 

7,277

 

Intangible assets, net

 

$

18,874

 

 

$

(3,623

)

 

$

15,251

 

 

For the twelve months ended December 31, 2018, amortization of intangible assets was recorded to the following line items of our consolidated statements of operations:

 

 

 

Year Ended

December 31,

 

(In thousands)

 

2018

 

Cost of revenue

 

$

368

 

Research and development expenses

 

 

203

 

Selling, general and administrative expenses

 

 

699

 

Amortization of intangible assets

 

$

1,270

 

 

The following table summarizes our estimated future amortization expense:

 

(In thousands)

 

2019

 

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

Thereafter

 

 

Total

 

Amortization expense

 

$

1,670

 

 

 

1,690

 

 

$

1,690

 

 

$

1,481

 

 

$

1,310

 

 

$

7,410

 

 

$

15,251