Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.20.2
Intangible Assets
9 Months Ended
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
The following table summarizes the components of gross and net intangible asset balances (in thousands):
  September 30, 2020 December 31, 2019
  Gross
Carrying
Amount
Accumulated
Impairment
Accumulated
Amortization
Net Book
Value
Gross
Carrying
Amount
Accumulated
Impairment
Accumulated
Amortization
Net Book
Value
Intangible assets with definite lives:
Technology $ 110,139  $ (12,459) $ (61,380) $ 36,300  $ 108,400  $ (6,035) $ (55,408) $ 46,957 
Customer related 92,178  (50) (47,737) 44,391  90,351  (50) (40,527) 49,774 
Trade names 46,437  (3,595) (30,071) 12,771  45,874  (3,237) (25,355) 17,282 
Internally developed software 13,281  —  (12,794) 487  13,281  —  (12,606) 675 
Patents 2,750  (133) (2,617) —  2,692  (133) (2,559) — 
Service agreements 1,190  —  (1,109) 81  1,190  —  (1,079) 111 
Definite-lived intangible assets $ 265,975  $ (16,237) $ (155,708) $ 94,030  $ 261,788  $ (9,455) $ (137,534) $ 114,799 

Finite-lived intangible assets are amortized over their weighted average lives, which are 14 years for technology, 10 years for customer related intangibles, 7 years for trade names, 6 years for internally developed software, 13 years for patents, 2 years for service agreements and 11 years weighted average in total.
Internally developed software consists of $11.1 million relating to costs incurred for development of internal use computer software and $2.2 million for development of software to be sold.
In the third quarter of 2020 we recorded an impairment charge related to intangible assets of $6.7 million of which $6.4 million was recorded within intangibles amortization within cost of revenue and $0.3 million was recorded within intangibles amortization within operating expenses on the Company's income statement. The impairment relates to an end of life decision for an acquired tradename and technology. During the third quarter of 2020, the Company made the decision to discontinue sales of the related product rather than continuing to invest in the product.
Amortization expense related to intangible assets with definite lives was as follows (in thousands):
  Three Months Ended
September 30,
Nine Months Ended
September 30,
  2020 2019 2020 2019
Technology $ 8,162  $ 1,719  $ 11,572  $ 5,186 
Customer related 2,204  2,159  6,468  6,509 
Trade names 1,767  1,487  4,700  4,476 
Internally developed software 51  359  188  1,369 
Patents —  20  —  60 
Service agreements $ 10  $ 102  30  307 
Total amortization $ 12,194  $ 5,846  $ 22,958  $ 17,907 

The amortization expense amounts shown above include internally developed software not held for sale of $24 thousand and $72 thousand for the three and nine months ended September 30, 2020, respectively which is recorded within our income statement as a general and administrative operating expense. The amortization expense amounts shown above include internally developed software held for sale of $27 thousand and $116 thousand for the three and nine months ended September 30, 2020, respectively which is recorded within our income statement as cost of goods sold.
Expected amortization expense related to definite-lived amortizable intangible assets is as follows (in thousands):
Three months ending December 31, 2020 $ 5,264 
2021 20,186 
2022 16,765 
2023 15,806 
2024 13,877 
2025 13,261 
Thereafter 8,871 
Total expected amortization expense $ 94,030