Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

v2.4.1.9
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Changes in the Company's intangible assets consisted of the following (in thousands):
 
 
 
 
 
 
 
Customer Relationships
Developed Technology
Trademarks / Trade-Names
Covenants Not to Compete
Total
Amortizable intangible assets as of December 31, 2014:
 
 
 
 
 
Original cost
$
5,226

$
8,770

$
2,193

$
40

$
16,229

Accumulated amortization
(671
)
(1,832
)
(334
)
(8
)
(2,845
)
Net identifiable intangible assets
$
4,555

6,938

1,859

32

$
13,384

Weighted-average useful lives (years)
10

6

15

2

9


 
 
 
 
 
 
 
Customer Relationships
Developed Technology
Trademarks / Trade-Names
Covenants Not to Compete
Total
Amortizable intangible assets as of December 31, 2013:
 
 
 
 
 
Original cost
$
2,982

$
4,667

$
2,122

$

$
9,771

Accumulated amortization
(373
)
(996
)
(177
)

(1,546
)
Net identifiable intangible assets
$
2,609

3,671

1,945


$
8,225

Weighted-average useful lives (years)
10

6

15

0

9

Amortization expense associated with the developed technology included in cost of software and appliances revenues was $650,000, $560,000 and $787,000 for the years ended December 31, 2014, 2013 and 2012 respectively. Amortization expense associated with other acquired intangible assets included in operating expenses as “amortization of purchased intangibles,” was $652,000, $627,000 and $952,000 for the years ended December 31, 2014, 2013 and 2012 respectively.
The Company estimates that amortization expense associated with intangible assets will be as follows (in thousands):
2015
$
2,109

2016
2,320

2017
2,324

2018
2,108

2019
1,391

Thereafter
3,132

 
$
13,384


The Company's cumulative goodwill impairment losses are as follows (in thousands):
 
 
 
 
 
Qumu, Inc.
 
Kulu Valley, Ltd.
 
Gross Carrying Amount
 
Cumulative Impairment Losses
 
Gross Carrying Amount
Balance, December 31, 2013
$
22,218

 
$
(22,218
)
 
$

Acquisitions

 

 
8,795

Foreign Currency Translation

 

 
(270
)
Balance, December 31, 2014
$
22,218

 
$
(22,218
)
 
$
8,525


On October 3, 2014, the Company completed the acquisition of Kulu Valley, Ltd. and recognized $8.8 million of goodwill and $6.7 million of intangible assets. The goodwill balance at December 31, 2014 reflects the impact of foreign currency exchange rate fluctuations since the acquisition date. See Note 3 to the Consolidated Financial Statements for additional information on the acquisition of Kulu Valley.
On October 10, 2011, the Company completed the acquisition of Qumu, Inc. and recognized $22.2 million of goodwill and $18.9 million of intangible assets. During the three months ended September 30, 2012, the Company recorded a $22.2 million goodwill and $7.3 million intangible asset impairment charge associated with these acquired assets.