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GOODWILL AND INTANGIBLE ASSETS
3 Months Ended
Oct. 01, 2011
Goodwill and Intangible Assets Disclosure [Abstract] 
GOODWILL AND INTANGIBLE ASSETS

2. GOODWILL AND INTANGIBLE ASSETS

The following table summarizes the activity related to the carrying value of our goodwill during the three months ended October 1, 2011 and October 2, 2010: 

     
(in thousands)    October 1, 2011   October 2, 2010
Beginning balance
           $ 16,669        $ 1,681  
Adjustments
             (239          
PTI acquisition
                       15,543  
Elimination of previous PTI goodwill
                       (1,325
Currency translation adjustments
             121           10   
Ending balance
           $ 16,551        $ 15,909  

 

The adjustments to goodwill primarily relate to indemnification amounts due to the Company pursuant to the PTI acquisition merger agreement, effectively reducing the merger consideration.

The following table summarizes the components of other intangible assets and related accumulated amortization balances for each of the period-ending dates shown, which were recorded as a result of business combinations:

 

   As of the three months ended  
   October 1, 2011   July 2, 2011  
(in thousands)    Gross   Accumulated Amortization   Net   Gross   Accumulated Amortization   Net
Customer relationships
           $ 5,820        $ (1,147      $ 4,673        $ 5,777        $ (909      $ 4,868  
eCERA trade name
             43           (37        6           45           (38        7   
Core developed technology
             12,153          (3,070        9,083          12,040          (2,648        9,392  
SaRonix supplier relationship
                                          398           (273        125   
 
Total amortizable purchased intangible assets
             18,016          (4,254        13,762          18,260          (3,868        14,392  
 
IPRD
             753                     753           883                     883   
SaRonix trade name
             391                     391           415                     415   
 
Total purchased intangible assets
           $ 19,160        $ (4,254      $ 14,906        $ 19,558        $ (3,868      $ 15,690  

 

Amortization expense related to finite-lived purchased intangible assets was approximately $853,000 and $398,000 for the three month periods ended October 1, 2011 and October 2, 2010, respectively. Amortization of intangible assets for the three month period ended October 1, 2011 included accelerated amortization related to a supplier relationship of approximately $125,000 and subsequent asset write-off.

 

The Company performs an impairment review of its intangible assets at least annually.  Based on the results of its most recent impairment review, the Company determined that no impairment of its intangible assets existed as of July 2, 2011. However, future impairment reviews could result in a charge to earnings. 

 

The finite-lived purchased intangible assets consist of supplier and customer relationships, trade names and existing and core technology, which have remaining useful lives from one to five years. We expect our future amortization expense associated with the Company’s intangible assets to be:

 

   Months from October 1, 2011        
(in thousands)    Next 12 Months   13-24 Months   25-36 Months   37-48 Months   49-60 Months   Over 60 Months   Total
Customer relationships
           $ 951         $ 951         $ 951         $ 951         $ 869         $         $ 4,673  
eCERA trade name
             6                                                             6   
Core developed technology
             1,980          1,957          1,730          1,714          1,702                    9,083  
 
           $ 2,937        $ 2,908        $ 2,681        $ 2,665        $ 2,571        $         $ 13,762