Intangible assets, net and goodwill

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets at September 30, 2021 and December 31, 2020 are as follows:


	September 30, 2021
(In thousands)	(Unaudited)						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Capitalized software development costs	$	82,099	$	(68,074)	$	14,025	$	115,251	$	(83,706)	$	31,545
Acquired technology	98,900		(19,017)		79,883		105,486		(17,913)		87,573
Customer relationships	39,747		(15,274)		24,473		40,273		(10,026)		30,247
Patents	35,923		(28,737)		7,186		35,803		(25,578)		10,225
Other	26,885		(15,514)		11,371		27,440		(14,311)		13,129
Total	$	283,554	$	(146,616)	$	136,938	$	324,253	$	(151,534)	$	172,719

Software development costs capitalized for the three months ended September 30, 2021 and 2020 were $0.6 million and $(0.2) million, respectively, and related amortization expense was $5.6 million and $6.9 million, respectively. For the nine months ended September 30, 2021 and 2020, capitalized software development costs were $1.4 million and $3.1 million, respectively, and related amortization expense was $18.9 million and $21.6 million, respectively. Capitalized software development costs for the three months ended September 30, 2021 and 2020 included costs related to stock-based compensation of less than $0.1 million and $0.1 million, respectively. For the nine months ended September 30, 2021 and 2020, capitalized software development costs included costs related to stock-based compensation of $0.2 million and $0.3 million, 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, which generally range from three to six years. Acquired technology, customer relationships and other intangible assets are amortized over their useful lives, which generally range from five to ten years. Patents are amortized using the straight-line method over their estimated period of benefit, which generally range from ten to seventeen years. Total intangible assets amortization expenses were $13.4 million and $14.2 million for the three months ended September 30, 2021 and 2020, respectively, and $43.3 million and $32.9 million for the nine months ended September 30, 2021 and 2020, respectively.

Goodwill

The carrying amount of goodwill as of September 30, 2021, was as follows:



(In thousands)	Amount
Balance as of December 31, 2020	$	467,547
Acquisitions	16,893
Measurement period adjustments	1,973
Foreign currency translation impact	(5,924)
Balance as of September 30, 2021 (unaudited)	$	480,489

The excess purchase price over the fair value of assets acquired is recorded as goodwill. As businesses are acquired, we assign assets acquired (including goodwill) and liabilities assumed to either our existing reporting unit or a newly identified reporting unit as of the date of the acquisition. In the event a disposal group meets the definition of a business, goodwill is allocated to the disposal group based on the relative fair value of the disposal group to the related reporting unit. As we have one operating segment comprised of components with similar economic characteristics, we allocate goodwill to one reporting unit for goodwill impairment testing. Goodwill is tested for impairment on an annual basis, and between annual tests if indicators of potential impairment exist, using a fair-value-based approach based on the market capitalization of the reporting unit. Our annual impairment test is performed in the fourth quarter of each year.

No impairment of goodwill was identified during the nine months ended September 30, 2021 or the twelve months ended December 31, 2020.