Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2011

Goodwill and Intangible Assets [Abstract]

GOODWILL AND INTANGIBLE ASSETS

6. GOODWILL AND INTANGIBLE ASSETS

Goodwill and impairment

The following table presents goodwill balances and movements for the nine months ended September 30, 2010:

	September 30,
(In thousands)	2010
Balance at beginning of quarter	$	7,851
Impairment charge		(7,851	)
Balance at end of quarter	$	—

The Company did not have goodwill balances for the nine months ended September 30, 2011.

Disclosures for Assets Measured at Fair Value on a Non-Recurring Basis

Management evaluates the recoverability of its identifiable intangible assets and long-lived assets in accordance with applicable accounting guidance, which requires the assessment of these assets for recoverability when events or circumstances indicate a potential impairment exists. In determining whether impairment exists, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of these assets. If impairment is indicated based on a comparison of the assets’ carrying values and the undiscounted cash flows, the impairment loss is measured and recorded as the amount by which the carrying amount of the assets exceeds the fair value of the assets.

The Company experienced adverse changes from prior expectations during the three months ended September 30, 2011 which negatively impacts the projected revenues and contributed to a decline in the market price of Trident common stock. The Company recognized this as a triggering event and, based on an impairment analysis, determined that the carrying amounts of its intangible assets (an element of asset groups evaluated for impairment) were recoverable taking into account the undiscounted cash flows expected to result from the use of each asset group over its expected useful life. The Company’s cash flow assumptions are established using historical data and internal estimates developed as part of its long-term planning process.

The Company performed an annual goodwill impairment analysis in the quarter ended June 30, 2010 and recorded an impairment charge of $7.9 million, due to the excess of the carrying value over the estimated market value for the television systems operating segment. The market approach method and the Company’s stock price at June 30, 2010, were used to determine the estimated market value of the television systems operating segment.

Intangible assets and impairment

The following table summarizes the components of intangible assets and related accumulated amortization, including impairment, for the periods presented:

	As of September 30, 2011							As of December 31, 2010
	Gross Carrying Amount		Accumulated Amortization and Impairment			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization and Impairment			Net Carrying Amount
	(In thousands)
Intangible assets:
Core & developed	$	84,607	$	(55,944	)	$	28,663	$	84,607	$	(40,716	)	$	43,891
Customer relationships		25,120		(19,312	)		5,808		25,120		(11,795	)		13,325
Patents		13,000		(4,755	)		8,245		13,000		(2,588	)		10,412
In-process R&D		9,144		(698	)		8,446		9,144		—			9,144
Service agreements		16,000		(15,161	)		839		16,000		(9,851	)		6,149
Total	$	147,871	$	(95,870	)	$	52,001	$	147,871	$	(64,950	)	$	82,921

        As of September 30, 2011, the status of in-process research and development is consistent with the Company’s expectation at the time the in-process research and development was acquired. Future period intangible assets amortization expense will include the amortization of in-process research and development, if and when the technology reaches technical feasibility. See Note 5, “Business Combinations,” of Notes to Condensed Consolidated Financial Statements for a further description of the Company’s in-process research and development.

The following table presents details of the amortization of intangible assets included in net revenues, cost of revenues, research and development and selling, general and administrative expense categories for the periods presented:

	Three months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Cost of revenues	$	7,915	$	11,612	$	25,793	$	38,799
Operating expenses:
Research and development		627		775		2,685		2,083
Selling, general and administrative		318		1,329		2,442		3,423
	$	8,860	$	13,716	$	30,920	$	44,305

As of September 30, 2011, the estimated future amortization expense of intangible assets in the table above is as follows, excluding two in-process research and development intangible assets that have not reached technological feasibility:

Year Ending	Estimated Amortization
	(In thousands)
2011( remaining 3 months)	$	8,088
2012		26,706
2013		7,015
2014		1,746
2015 and thereafter		—
Total	$	43,555