Identifiable Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Identifiable Intangible Assets and Goodwill

6. Identifiable Intangible Assets and Goodwill

Identifiable intangible assets, net consisted of the following:



	December 31, 2017							December 31, 2016
(in thousands)	Gross carrying amount		Accumulated amortization			Net book value		Gross carrying amount		Accumulated amortization			Net book value
Finite-lived intangible assets:
Customer relationships	$	847,978	$	(671,392	)	$	176,586	$	831,419	$	(594,378	)	$	237,041
Non-solicitation agreement	1,557		(1,557		)	—		1,359		(1,359		)	—
Tradename	1,200		(1,200		)	—		1,200		(1,200		)	—
	850,735		(674,149		)	176,586		833,978		(596,937		)	237,041
Indefinite-lived intangible assets:
Tradename and trademarks	82,400		—			82,400		82,400		—			82,400
Identifiable intangible, net	$	933,135	$	(674,149	)	$	258,986	$	916,378	$	(596,937	)	$	319,441

Customer relationships are amortized using either the pattern of consumption method or the straight-line method, depending on which method more accurately reflects the pattern in which the asset is consumed. The pattern of consumption is determined primarily based on forecasted cash flows, which includes estimates for revenues, expenses and customer attrition. The weighted-average amortization period for customer relationships is 9.9 years.

Amortization expense of identifiable intangible assets, which is included in Depreciation and amortization in the consolidated statements of operations, for the years ended December 31, 2017, 2016 and 2015 was $66.6 million, $79.0 million and $87.1 million, respectively.

The estimated amortization expense of intangible assets over the next five years and thereafter is as follows:



(in thousands)
Year ended December 31, 2018	$	55,822
Year ended December 31, 2019	46,202
Year ended December 31, 2020	32,468
Year ended December 31, 2021	15,044
Year ended December 31, 2022	13,544
Thereafter	13,506
Amortization Expense	$	176,586

The following table summarizes the changes in the carrying amount of goodwill for the periods ended December 31, 2017 and 2016:



(in thousands)
Balance at December 31, 2015	$	2,286,876
Effect of foreign currency translation	(14,080		)
Balance at December 31, 2016	2,272,796
Effect of foreign currency translation	41,485
Balance at December 31, 2017	$	2,314,281

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

SYNIVERSE HOLDINGS INC 10-K