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Intangibles
12 Months Ended
Dec. 31, 2012
Intangibles [Abstract]  
Intangibles

 

Note 7 – Intangibles

 

Intangibles at December 31, 2012 and December 31, 2011 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

December 31, 2012

 

December 31, 2011

 

 

Gross Carrying Amount

 

Accumulated Amortization

 

Net Carrying Amount

 

Gross Carrying Amount

 

Accumulated Amortization

 

Net Carrying Amount

Capitalized software development costs

$

45,064 

$

(23,450)

$

21,614 

$

44,198 

$

(20,718)

$

23,480 

Acquired technology

 

89,876 

 

(42,562)

 

47,314 

 

67,918 

 

(32,210)

 

35,708 

Patents

 

24,046 

 

(9,398)

 

14,648 

 

21,875 

 

(7,992)

 

13,883 

Other

 

27,421 

 

(17,084)

 

10,337 

 

24,614 

 

(13,819)

 

10,795 

 

$

186,407 

$

(92,494)

$

93,913 

$

158,605 

$

(74,739)

$

83,866 

 

Software development costs capitalized during 2012, 2011 and 2010 were $12.2 million, $12.6 million and $16.5 million, respectively, and related amortization was $14.1 million, $13.4 million and $10.7 million, respectively. Included in these capitalized costs for the years ended December 31, 2012, 2011 and 2010, were costs related to stock based compensation of $519,000, $539,000 and $719,000, respectively. We have conformed the prior year balances related to capitalized software development costs to the current year presentation, which is net of fully amortized assets.

 

Amortization of capitalized software development costs is computed on an individual product basis for those products available for market and is recognized based on the product’s estimated economic life, generally three years. Acquired intangible assets which include acquired technology and other are amortized over their useful lives, which range from three to eight years. Patents are amortized using the straight-line method over their estimated period of benefit, generally ten to seventeen years. Total intangible assets amortization expenses were $28.1 million, $25.5 million and $17.9 million for the years ended December 31, 2012, 2011 and 2010, respectively.

 

Capitalized software development costs, acquired technology, patents and other had weighted-average useful lives of 1.5 years, 2.5 years, 4.0 years, and 2.0 years, respectively, as of December 31, 2012. The estimated future amortization expense related to intangible assets as of December 31, 2012 was as follows:

 

 

 

 

 

 

 

 

 

Amount

 

 

(In thousands)

2013

$

34,892 

2014

 

21,787 

2015

 

15,445 

2016

 

9,220 

2017

 

4,928 

Thereafter

 

7,641 

 

$

93,913 

 

       The overall increase in our acquired technology and other intangible assets can be attributed to our acquisitions in 2012. See Note 16 – Acquisitions of Notes to Consolidated Financial Statements for additional discussion related to these acquisitions.