Goodwill And Intangible Assets (Tables)

9 Months Ended

Aug. 01, 2015

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):



	August 1, 2015		November 1, 2014
Indefinite-lived intangible assets
Goodwill	$	1,617,136	$	1,567,723
In-process research and development (“IPR&D”) ⁽¹⁾	15,110		15,110
Finite-lived intangible assets
Total intangible assets subject to amortization ^{(2), (3)}	64,291		11,548
Total intangible assets	$	1,696,537	$	1,594,381

⁽¹⁾

Acquired IPR&D is an intangible asset accounted for as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. If the research and development effort associated with the IPR&D is successfully completed, then the IPR&D intangible asset will be amortized over its estimated useful life to be determined at the date the effort is completed. The development effort on the IPR&D intangible asset is expected to be completed by the first quarter of fiscal year 2016.


⁽²⁾	During the nine months ended August 1, 2015, the Company purchased a perpetual, non-exclusive license to certain patents for $7.8 million.


⁽³⁾	During the nine months ended August 1, 2015, the Company acquired $52.3 million of intangible assets related to the Company’s acquisition of two businesses. See Note 3, “Acquisitions and Divestitures,” of the Notes to Condensed Consolidated Financial Statements.

Schedule Of Goodwill Activity By Reportable Segment

The following table summarizes goodwill activity by reportable segment for the nine months ended August 1, 2015 (in thousands):



	SAN Products			Internet Protocol (“IP”) Networking Products			Global Services		Total
Balance at November 1, 2014
Goodwill	$	176,346		$	1,365,175		$	155,416	$	1,696,937
Accumulated impairment losses	—			(129,214		)	—		(129,214		)
	176,346			1,235,961			155,416		1,567,723
Acquisitions ⁽¹⁾	—			49,458			—		49,458
Purchase accounting adjustments during the nine months ended August 1, 2015	—			(62		)	—		(62		)
Tax and other adjustments during the nine months ended August 1, 2015 ⁽²⁾	(20		)	—			—		(20		)
Translation adjustments during the nine months ended August 1, 2015	—			37			—		37
Balance at August 1, 2015
Goodwill	176,326			1,414,608			155,416		1,746,350
Accumulated impairment losses	—			(129,214		)	—		(129,214		)
	$	176,326		$	1,285,394		$	155,416	$	1,617,136


⁽¹⁾	The goodwill acquired relates to the Company’s acquisition of two businesses, which is gross of the adjustments recorded during the purchase price allocation period. See Note 3, “Acquisitions and Divestitures,” of the Notes to Condensed Consolidated Financial Statements.


⁽²⁾	The goodwill adjustments during the nine months ended August 1, 2015, 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):



August 1, 2015	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Useful Life (in years)
Trade name	$	1,090	$	360	$	730	4.50
Core/developed technology	40,530		7,007		33,523		3.70
Patent portfolio license ⁽¹⁾	7,750		570		7,180		17.99
Customer relationships	23,110		1,735		21,375		7.42
Non-compete agreements	1,050		584		466		1.42
Patents with broader applications	1,040		23		1,017		14.63
Total intangible assets	$	74,570	$	10,279	$	64,291	6.70

November 1, 2014	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Useful Life (in years)
Trade name	$	590	$	227	$	363	3.00
Core/developed technology	12,080		1,964		10,116		4.30
Customer relationships	1,080		427		653		3.01
Non-compete agreements	810		394		416		2.01
Total intangible assets	$	14,560	$	3,012	$	11,548	4.10

⁽¹⁾

The patent portfolio license was assigned an estimated useful life that reflects the Company’s consumption of the expected defensive benefits related to this license to certain patents. The method of amortization for the patent portfolio license reflects the Company’s estimate of the pattern in which these expected defensive benefits will be used by the Company and is primarily due to a mix of expiration patterns of the individual patents included in the license.

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 Income (in thousands):



	Three Months Ended				Nine Months Ended
	August 1, 2015		August 2, 2014		August 1, 2015		August 2, 2014
Cost of revenues	$	2,548	$	552	$	5,043	$	7,410
Research and development	889		131		1,654		10,145
General and administrative ⁽¹⁾	280		—		570		—
Total	$	3,717	$	683	$	7,267	$	17,555


⁽¹⁾	The amortization is related to the $7.8 million of perpetual, non-exclusive license to certain patents purchased during the nine months ended August 1, 2015.

Schedule Of Estimated Future Amortization Of Intangible Assets

The following table presents the estimated future amortization of finite-lived intangible assets as of August 1, 2015 (in thousands):



Fiscal Year	Estimated Future Amortization
2015 (remaining three months)	$	3,778
2016	14,774
2017	14,305
2018	9,785
2019	6,259
Thereafter	15,390
Total	$	64,291

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The following table presents the fair values and weighted-average useful lives of the acquired finite-lived intangible assets (in thousands, except for weighted-average useful life):



	Fair Value		Weighted- Average Useful Life (in years)
Trade name	$	500	6.00
Core/developed technology	28,450		4.04
Customer relationships	22,030		7.93
Non-compete agreements	240		2.00
Patents with broader applications ⁽¹⁾	1,040		15.00
Total intangible assets	$	52,260	5.91


⁽¹⁾	These are patents acquired by the Company as part of an acquisition during the three months ended May 2, 2015. The potential use of these patents extends beyond their use in the core/developed technology acquired in the acquisition.