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Intangible Assets
12 Months Ended
Dec. 31, 2013
Intangible Assets [Abstract]  
Intangible Assets

Note 7 – Intangible asset 

  

Intangible assets at December 31, 2013 and December 31, 2012 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

December 31, 2013

 

December 31, 2012

 

 

Gross Carrying Amount

 

Accumulated Amortization

 

Net Carrying Amount

 

Gross Carrying Amount

 

Accumulated Amortization

 

Net Carrying Amount

Capitalized software development costs

$

48,947 

$

(25,706)

$

23,241 

$

45,064 

$

(23,450)

$

21,614 

Acquired technology

 

89,446 

 

(54,253)

 

35,193 

 

89,876 

 

(42,562)

 

47,314 

Patents

 

26,070 

 

(11,045)

 

15,025 

 

24,046 

 

(9,398)

 

14,648 

Other

 

28,517 

 

(19,666)

 

8,851 

 

27,421 

 

(17,084)

 

10,337 

 

$

192,980 

$

(110,670)

$

82,310 

$

186,407 

$

(92,494)

$

93,913 

    

Software development costs capitalized during 2013, 2012, and 2011 were $15.6 million, $12.2 million, and $12.6 million, respectively, and related amortization expense was $14.0 million,  $14.1 million, and $13.4 million, respectively. Capitalized software development costs for the years ended December 31, 2013, 2012, and 2011 included costs related to stock based compensation of $742,000,  $519,000 and $539,000, respectively. The related amounts in the table above are 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 technology and other intangible assets 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 10 to 17 years. Total intangible assets amortization expenses were $32 million, $28 million, and $25 million for the years ended December 31, 2013, 2012, and 2011, respectively.

 

 

 

 

 

 

 

 

 

 

 

Capitalized software development costs, acquired technology, patents and other had weighted-average useful lives of 1.8 years, 2.1 years, 4.0 years, and 2.3 years, respectively, as of December 31, 2013. The estimated future amortization expense related to intangible assets as of December 31, 2013 was as follows:

 

 

 

 

 

 

 

 

 

Amount

 

 

(In thousands)

2014

$

32,972 

2015

 

23,050 

2016

 

12,580 

2017

 

5,521 

2018

 

785 

Thereafter

 

7,402 

 

$

82,310 

 

The overall increase in our acquired technology and other intangible assets can be attributed to our acquisitions in 2012. See Note 17 – Acquisitions of Notes to Consolidated Financial Statements for additional discussion related to these acquisitions.