Goodwill and Intangible Assets
 9 Months Ended
Sep. 30, 2017
Goodwill and Intangible Assets  
Goodwill and Intangible Assets

5. Goodwill and Intangible Assets

 

Goodwill

 

Changes in the carrying amount of goodwill consisted of the following (in thousands):

 

 

 

 

 

 

 

    

Amount

  

Balance at December 31, 2016

 

$

16,809

 

Current period acquisitions 

 

 

4,785

 

Foreign currency translation adjustment

 

 

261

 

Balance at September 30, 2017

 

$

21,855

 

 

Goodwill represents the excess of consideration transferred over the fair value of assets acquired and liabilities assumed.

 

Amortizable Intangible Assets

 

The Company’s intangible assets and related accumulated amortization consisted of the following as of September 30, 2017, and December 31, 2016 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2017

 

 

 

 

Gross Carrying

 

 

Accumulated

 

 

 

 

 

    

 

Amount

    

 

Amortization

    

 

Net

 

Developed technology 

 

$

18,187

 

$

(8,122)

 

$

10,065

 

Customer relationships

 

 

11,720

 

 

(2,197)

 

 

9,523

 

Trademark/trade name

 

 

6,776

 

 

(728)

 

 

6,048

 

Non-competition agreements 

 

 

295

 

 

(256)

 

 

39

 

Total intangible assets 

 

$

36,978

 

$

(11,303)

 

$

25,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

 

 

Gross Carrying

 

Accumulated

 

 

 

 

 

    

Amount

    

Amortization

    

Net

  

Developed technology 

 

$

16,618

 

$

(5,738)

 

$

10,880

 

Customer relationships

 

 

9,196

 

 

(1,160)

 

 

8,036

 

Trademark/trade name

 

 

4,410

 

 

(337)

 

 

4,073

 

Non-competition agreements 

 

 

295

 

 

(164)

 

 

131

 

Total intangible assets 

 

$

30,519

 

$

(7,399)

 

$

23,120

 

 

The weighted average amortization period for developed technology, customer relationships, trademarks/trade names, and non-competition agreements is 5.4 years, 8.3 years, 12.0 years, and 2.0 years, respectively; and 7.5 years for all amortizable intangible assets in total.

 

The Company recorded amortization expense during the three and nine months ended September 30, 2017 and 2016 for these intangible assets as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

    

2017

    

2016

    

 

2017

    

2016

  

Cost of revenue

 

$

802

 

$

800

 

 

$

2,367

 

$

2,266

 

Research and development

 

 

50

 

 

50

 

 

 

145

 

 

140

 

Sales and marketing

 

 

482

 

 

371

 

 

 

1,373

 

 

987

 

Total amortization of intangible assets 

 

$

1,334

 

$

1,221

 

 

$

3,885

 

$

3,393

 

 

Amortization of finite lived intangible assets as of September 30, 2017 for the next five years is as follows (in thousands):

 

 

 

 

 

 

    

Amount

2017

 

$

1,315

2018

 

 

5,075

2019

 

 

4,959

2020

 

 

4,053

2021

 

 

2,196

Thereafter

 

 

8,077

 

 

$

25,675