Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The carrying values of intangible assets were as follows:



	December 31, 2017							December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)							(In thousands)
Goodwill	$	1,478,257	$	—		$	1,478,257	$	1,385,995	$	—		$	1,385,995
Definite-lived intangible assets subject to amortization:
Developed technology	$	498,649	$	(318,366	)	$	180,283	$	420,928	$	(239,233	)	$	181,695
Customer relationships	320,550		(98,175		)	222,375		309,112		(77,872		)	231,240
Trademarks	56,794		(18,648		)	38,146		20,534		(10,915		)	9,619
In-service research and development	23,428		(13,483		)	9,945		22,977		(9,121		)	13,856
Backlog	14,535		(14,535		)	—		12,638		(12,638		)	—
Total intangible assets subject to amortization	913,956		(463,207		)	450,749		786,189		(349,779		)	436,410
Indefinite-lived intangible assets not subject to amortization:
Trademarks	92,758		—			92,758		121,972		—			121,972
In-process research and development	1,700		—			1,700		1,700		—			1,700
Total intangible assets not subject to amortization	94,458		—			94,458		123,672		—			123,672
Intangible assets	$	1,008,414	$	(463,207	)	$	545,207	$	909,861	$	(349,779	)	$	560,082

Segment Allocation of Goodwill and Trademarks

The changes in the carrying amount of goodwill assigned to reporting units in our reportable segments are as follows:



	Broadcast Solutions			Enterprise Solutions		Industrial Solutions			Network Solutions			Consolidated
	(In thousands)
Balance at December 31, 2015	$	536,388		$	73,278	$	196,719		$	578,730		$	1,385,115
Acquisitions and purchase accounting adjustments	8,492			—		—			—			8,492
Translation impact	(838		)	—		80			(1,377		)	(2,135		)
Reclassify to assets held for sale	—			—		(5,477		)	—			(5,477		)
Balance at December 31, 2016	$	544,042		$	73,278	$	191,322		$	577,353		$	1,385,995
Acquisitions and purchase accounting adjustments	71,394			—		—			—			71,394
Translation impact	13,557			—		2,790			4,521			20,868
Balance at December 31, 2017	$	628,993		$	73,278	$	194,112		$	581,874		$	1,478,257

The changes in the carrying amount of indefinite-lived trademarks are as follows:



	Broadcast Solutions			Enterprise Solutions		Industrial Solutions			Network Solutions			Consolidated
	(In thousands)
Balance at December 31, 2015	$	80,922		$	4,063	$	9,090		$	35,596		$	129,671
Translation impact	(4,635		)	—		40			(199		)	(4,794		)
Reclassify to assets held for sale	—			—		(2,905		)	—			(2,905		)
Balance at December 31, 2016	$	76,287		$	4,063	$	6,225		$	35,397		$	121,972
Translation impact	2,727			—		602			658			3,987
Reclassify to definite-lived	—			—		(2,201		)	(31,000		)	(33,201		)
Balance at December 31, 2017	$	79,014		$	4,063	$	4,626		$	5,055		$	92,758

Impairment

The annual measurement date for our goodwill and indefinite-lived intangible assets impairment test is our fiscal November month-end. For our 2017 goodwill impairment test, we performed a quantitative assessment for five of our reporting units and determined the estimated fair values of our reporting units by calculating the present values of their estimated future cash flows using Level 3 inputs. We determined that the fair values of the reporting units were in excess of the carrying values; therefore, we did not record any goodwill impairment for the five reporting units. We performed a qualitative assessment for the remaining seven of our reporting units, and we determined that it was more likely than not that the fair value was greater than the carrying value. Therefore, we did not record any goodwill impairment for the seven reporting units. We also did not recognize any goodwill impairment in 2016 or 2015 based on the results of our annual goodwill impairment testing.

Similar to the quantitative goodwill impairment test, we determined the estimated fair values of our indefinite-lived trademarks by calculating the present values of the estimated cash flows (using Level 3 inputs) attributable to the respective trademarks. We did not recognize any trademark impairment charges in 2017, 2016, or 2015.

Amortization Expense

We recognized amortization expense in income from continuing operations of $104.0 million, $98.4 million, and $103.8 million in 2017, 2016, and 2015, respectively. We expect to recognize annual amortization expense of $88.2 million in 2018, $78.1 million in 2019, $61.7 million in 2020, $29.7 million in 2021, and $27.0 million in 2022 related to our intangible assets balance as of December 31, 2017.

The weighted-average amortization period for our customer relationships, trademarks, developed technology, and in-service research and development is 18.5 years, 8.0 years, 6.5 years, and 4.7 years, respectively.

In connection with the segment change discussed in Note 6, we re-evaluated the useful life of the Tripwire trademark and concluded that an indefinite life is no longer appropriate. We have estimated a useful life of 10 years and will re-evaluate this estimate if and when our expected use of the Tripwire trademark changes. We began amortizing the Tripwire trademark in the first quarter of 2017, which resulted in amortization expense of $3.1 million for the year ended December 31, 2017. As of December 31, 2017, the net book value of the Tripwire trademark was $27.9 million.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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