Netgear 2012 Annual Report Download - page 74
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Table of Contents NETGEAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
the first fiscal quarter in 2013 and the estimated future cost to complete these IPR&D projects is $0.1 million . As of December 31, 2012 ,
$1.0
million of the IPR&D had reached technical feasibility and as a result, was reclassified from IPR&D to technology.
Amortization of purchased intangible assets in the years ended December 31, 2012 , 2011 and 2010 was $4.9 million , $4.8 million and
$5.3
million , respectively. No impairment charges were recorded in the years ended December 31, 2012 , 2011 and 2010 .
Estimated amortization expense related to finite-lived intangibles for each of the next five years and thereafter is as follows:
Goodwill
The changes in the carrying amount of goodwill during the year ended December 31, 2012 and 2011 are as follows:
During 2012 , the Company recorded goodwill of $11.9 million and $3.0 million
, related to its acquisition of AVAAK, and certain intellectual
property of Firetide, respectively. During 2011
, the Company made organization changes to its business segments and allocated goodwill to the new
segments based on each of the segment's relative fair values. In addition, the Company recorded $11.7
million of goodwill associated with the
acquisition of the Customer Networking Solutions division of Westell Technologies, Inc. (“Westell”). Refer to Note 2, Business Acquisitions
, for
additional information regarding the Company's acquisitions.
There were no impairments to goodwill in the years ended December 31, 2012 , 2011 and 2010 . Refer to Note 1,
The Company and Summary of
Significant Accounting Policies , for additional information regarding the Company's goodwill impairment assessment.
70
Year Ending December 31, Amount
2013
$
5,663
2014
5,339
2015
4,722
2016
4,360
2017
3,017
Thereafter
3,520
Total expected amortization expense
$
26,621
New Segments
Old Segment
Retail
Commercial
Service
Provider
Total
Goodwill at December 31, 2010
$
74,198
$
—
$
—
$
—
$
74,198
Relative fair value approach
(74,198
)
33,546
32,043
8,609
—
Net additions related to acquisitions
—
—
—
11,746
11,746
Goodwill at December 31, 2011
—
33,546
32,043
20,355
85,944
Goodwill acquired during the period
—
11,895
3,041
—
14,936
Goodwill at December 31, 2012
$
—
$
45,441
$
35,084
$
20,355
$
100,880