Intangible Assets

In connection with our acquisitions of Silicon Image in March 2015 and SiliconBlue in December 2011 we recorded identifiable intangible assets related to developed technology, customer relationships, licensed technology, patents, and in-process research and development based on guidance for determining fair value under the provisions of ASC 820, "Fair Value Measurements." Additionally, during fiscal 2015 and 2017, we licensed additional third-party technology. We do not believe there is any significant residual value associated with these intangible assets. We are amortizing the intangible assets using the straight-line method over their estimated useful lives.

During the first quarter of fiscal 2017, we sold a portfolio of patents that had been acquired in our acquisition of Silicon Image for $18.0 million. This amount was received in two installments over the first and second quarters of fiscal 2017, and was recognized as licensing and services revenue in our Consolidated Statements of Operations during the respective periods in which the installment payments were received. As a result of this transaction, Intangible assets, net was reduced by approximately $3.5 million on our Consolidated Balance Sheets.

We monitor the carrying value of our intangible assets for potential impairment and test the recoverability of such assets annually during the fourth quarter and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. The results of our assessments are summarized below and more fully detailed in Note 9.

During the fourth quarter of fiscal 2017, we finalized our impairment assessment procedures related to certain of the developed technology intangible assets acquired in our acquisition of Silicon Image, resulting in a $3.8 million reduction to the preliminary impairment charge of $36.2 million recorded in the third quarter of fiscal 2017, for a net impairment charge of $32.4 million in fiscal 2017. During the third quarter of fiscal 2016, we recorded a $7.9 million impairment charge to the intangible assets associated with future HDMI adopter fees. During the fourth quarter of fiscal 2015, we recorded a $9.0 million impairment charge to the intangible assets of the then Qterics operating segment comprising developed technology of $3.9 million, and customer relationships of $5.1 million. With the sale of Qterics in April 2016, its balances for intangible assets, accumulated amortization, and impairment have been removed from the balance for Intangible assets, net in the Consolidated Balance Sheet as of December 31, 2016.

The following tables summarize the details of our Intangible assets, net as of December 30, 2017 and December 31, 2016:



	December 30, 2017
(In thousands)	Weighted Average Amortization Period (in years)	Gross		Impairment			Accumulated Amortization			Intangible assets, net
Developed technology	4.7	$	158,700	$	(32,431	)	$	(81,847	)	$	44,422
Customer relationships	5.7	22,934		—			(16,696		)	6,238
Licensed technology	3.5	2,392		—			(1,744		)	648
Total identified intangible assets		$	184,026	$	(32,431	)	$	(100,287	)	$	51,308



	December 31, 2016
(In thousands)	Weighted Average Amortization Period (in years)	Gross		Impairment			Accumulated Amortization			Intangible assets, net
Developed technology	4.7	$	141,359	$	—		$	(55,493	)	$	85,866
Customer relationships	6.1	30,800		(7,866		)	(13,694		)	9,240
Licensed technology	3.3	2,127		—			(1,201		)	926
Patents	5	769		—			(279		)	490
Total identified finite-lived intangible assets		175,055		(7,866		)	(70,667		)	96,522
In-process research and development	indefinite	22,341		—			—			22,341
Total identified intangible assets		$	197,396	$	(7,866	)	$	(70,667	)	$	118,863

We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table:



	Year Ended
(In thousands)	December 30, 2017		December 31, 2016		January 2, 2016
Research and development	$	569	$	745	$	731
Amortization of acquired intangible assets	31,340		33,575		29,580
	$	31,909	$	34,320	$	30,311

The annual expected amortization expense of acquired intangible assets with finite lives is as follows:



(In thousands)	Amount
2018	$	19,419
2019	16,619
2020	7,504
2021	5,148
2022	2,352
Thereafter	266
Total	$	51,308