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Goodwill and Intangible Assets

9 Months Ended

Mar. 30, 2013

Goodwill and Intangible Assets [Abstract]

2. GOODWILL AND INTANGIBLE ASSETS

The following table summarizes the activity related to the carrying value of the Company’s goodwill during the nine months ended March 30, 2013:

(In thousands)

Goodwill at June 30, 2012	$	16,797
Currency translation adjustments		104
Goodwill at March 30, 2013	$	16,901

Goodwill represents the excess of the purchase price of an acquired business over the fair value of the underlying net tangible and intangible assets.

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:

	March 30, 2013							June 30, 2012
(in thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net

Customer relationships	$	5,943	$	(2,627	)	$	3,316	$	5,906	$	(1,888	)	$	4,018
eCERA trade name		44		(44	)		—		44		(43	)		1
Core developed technology		13,189		(6,329	)		6,860		13,110		(4,698	)		8,412

Total amortizable purchased intangible assets		19,176		(9,000	)		10,176		19,060		(6,629	)		12,431

SaRonix trade name		402		—			402		400		—			400

Total purchased intangible assets	$	19,578	$	(9,000	)	$	10,578	$	19,460	$	(6,629	)	$	12,831

Amortization expense related to finite-lived purchased intangible assets was approximately $775,000 and $2.3 million for the three and nine month periods ended March 30, 2013 and $778,000 and $2.4 million for the three and nine month periods ended March 31, 2012, respectively. Amortization of intangible assets for the nine month period ended March 31, 2012 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 June 30, 2012. 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. The Company expects future amortization expense associated with its intangible assets to be:

	Months from March 30, 2013
(in thousands)	Next 12 Months		13-24 Months		25-36 Months		37-48 Months		49-60 Months		Over 60 Months		Total
Customer relationships	$	970	$	970	$	970	$	406	$	—	$	—	$	3,316
Core developed technology		2,020		1,878		1,878		1,084		—		—		6,860
	$	2,990	$	2,848	$	2,848	$	1,490	$	—	$	—	$	10,176

- 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.

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