Goodwill And Intangible Assets (Tables)

6 Months Ended

May 03, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The following table presents a summary of the net carrying value of the Company’s intangible assets (in thousands):



	May 3, 2014		October 26, 2013
Indefinite-lived intangible assets
Goodwill	$	1,556,733	$	1,645,437
In-process research and development ⁽¹⁾	12,260		21,590
Finite-lived intangible assets
Total intangible assets subject to amortization	11,126		18,668
Total intangible assets	$	1,580,119	$	1,685,695

⁽¹⁾

Acquired in-process research and development (“IPRD”) is an intangible asset accounted for as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. As an indefinite-lived asset, the IPRD intangible asset is subject to testing for impairment annually, which the Company conducts as of the first day of the second fiscal quarter, and whenever events or changes in facts and circumstances indicate that it is more likely than not that IPRD is impaired. If the research and development effort associated with the IPRD is successfully completed, then the IPRD intangible asset will be amortized over its estimated useful life to be determined at the date the effort is completed. During the three months ended May 3, 2014, development work was completed on $9.3 million of the IPRD intangible asset and this completed IPRD intangible asset is being amortized as Core/developed technology. The development effort on the remaining IPRD intangible asset is expected to be completed in the first half of fiscal year 2015.

Schedule Of Goodwill Activity By Reportable Segment

The following table summarizes goodwill activity by reportable segment for the six months ended May 3, 2014 (in thousands):



	SAN Products			IP Networking Products			Global Services		Total
Balance at October 26, 2013
Goodwill	$	176,878		$	1,358,975		$	155,416	$	1,691,269
Accumulated impairment losses	—			(45,832		)	—		(45,832		)
	176,878			1,313,143			155,416		1,645,437
Impairment ⁽¹⁾	—			(83,382		)	—		(83,382		)
Divestitures⁽²⁾	(474		)	(3,657		)	—		(4,131		)
Tax and other adjustments during the six months ended May 3, 2014 ⁽³⁾	(40		)	(1,151		)	—		(1,191		)
Balance at May 3, 2014
Goodwill	176,364			1,354,167			155,416		1,685,947
Accumulated impairment losses	—			(129,214		)	—		(129,214		)
	$	176,364		$	1,224,953		$	155,416	$	1,556,733

⁽¹⁾

In the second quarter of fiscal year 2014, the Company has made a strategic shift in the allocation of its engineering resources and has reduced its investment in the hardware-based ADX products and increased investment in the software-based ADX products for the Layer 4-7 market. As a result of this change in strategy, the Company expects hardware-based ADX and related support revenue to be negatively impacted. Based on these changes in estimates, the Company recognized an impairment charge because the book value of its Application Delivery Products (“ADP”) reporting unit net assets, which includes the ADX products, exceeded the estimated fair value of these assets. The goodwill amount related to the Company’s other reporting units was not impacted.


⁽²⁾	The goodwill disposed relates to the sale of the Company’s network adapter business, see Note 3, “Acquisitions and Divestitures,” of the Notes to Condensed Consolidated Financial Statements.


⁽³⁾	The goodwill adjustments during the six months ended May 3, 2014, were primarily a result of tax benefits from the exercise of stock awards of acquired companies.

Schedule Of Finite-Lived Intangible Assets

The following tables present details of the Company’s finite-lived intangible assets (in thousands, except for weighted-average remaining useful life):



May 3, 2014	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Useful Life (in years)
Trade name	$	460	$	167	$	293	2.51
Core/developed technology	10,370		812		9,558		4.65
Customer relationships	1,080		321		759		3.51
Non-compete agreements	810		294		516		2.51
Total intangible assets ⁽¹⁾	$	12,720	$	1,594	$	11,126	4.41

October 26, 2013	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Useful Life (in years)
Trade name	$	460	$	110	$	350	3.01
Core/developed technology	192,340		185,254		7,086		0.35
Customer relationships	287,090		276,473		10,617		0.51
Non-compete agreements	810		195		615		3.01
Total intangible assets	$	480,700	$	462,032	$	18,668	0.58


⁽¹⁾	During the six months ended May 3, 2014, $477.3 million of intangible assets became fully amortized and, therefore, were removed from the balance sheet.

Schedule Of Amortization Of Intangible Assets Included On Consolidated Statements Of Operations

The following table presents the amortization of finite-lived intangible assets included in the Condensed Consolidated Statements of Operations (in thousands):



	Three Months Ended				Six Months Ended
	May 3, 2014		April 27, 2013		May 3, 2014		April 27, 2013
Cost of revenues	$	396	$	9,651	$	6,858	$	20,431
Operating expenses	131		13,151		10,014		28,007
Total	$	527	$	22,802	$	16,872	$	48,438

Schedule Of Estimated Future Amortization Of Intangible Assets

The following table presents the estimated future amortization of finite-lived intangible assets as of May 3, 2014 (in thousands):



Fiscal Year	Estimated Future Amortization
2014 (remaining six months)	$	1,366
2015	2,731
2016	2,419
2017	2,104
2018	1,884
Thereafter	622
Total	$	11,126