Goodwill and Purchased Intangible Assets (Notes)

9 Months Ended

Sep. 30, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and purchased intangible assets [Text Block]

Goodwill and Purchased Intangible Assets

Goodwill

The following table summarizes the Company's goodwill activities by segment in the nine months ended September 30, 2011 (in millions):



	Infrastructure		SLT			Total
Balance as of January 1, 2011
Goodwill	$	1,643.4	$	3,564.4		$	5,207.8
Accumulated impairment losses	—		(1,280.0		)	(1,280.0		)
Carrying value at January 1, 2011	1,643.4		2,284.4			3,927.8
Adjustments to goodwill	2.1		(1.8		)	0.3
Goodwill acquired during the nine months ended September 30, 2011	0.4		—			0.4
Balance as of September 30, 2011
Goodwill	1,645.9		3,562.6			5,208.5
Accumulated impairment losses	—		(1,280.0		)	(1,280.0		)
Carrying value at September 30, 2011	$	1,645.9	$	2,282.6		$	3,928.5

The adjustments to goodwill during the nine months ended September 30, 2011, were related to adjustments in net tangible assets assumed from certain businesses acquired in 2010 and 2011. There were no impairments to goodwill during the three and nine months ended September 30, 2011, and 2010.

Purchased Intangible Assets

Changes to the Company’s purchased intangible assets were as follows (in millions):



	Gross		Accumulated Amortization			Net
As of September 30, 2011:
Intangible assets with finite lives:
Technologies and patents	$	494.4	$	(398.3	)	$	96.1
Other	91.5		(65.5		)	26.0
Total intangible assets with finite lives	585.9		(463.8		)	122.1
IPR&D with indefinite lives	7.9		—			7.9
Total purchased intangible assets	$	593.8	$	(463.8	)	$	130.0

As of December 31, 2010:
Intangible assets with finite lives:
Technologies and patents	$	471.1	$	(381.4	)	$	89.7
Other	86.4		(62.2		)	24.2
Total intangible assets with finite lives	557.5		(443.6		)	113.9
IPR&D with indefinite lives	7.9		—			7.9
Total purchased intangible assets	$	565.4	$	(443.6	)	$	121.8

Amortization of purchased intangible assets included in operating expenses and cost of product revenues totaled $6.7 million and $2.4 million for the three months ended September 30, 2011, and 2010, respectively, and $20.2 million and approximately $5.0 million for the nine months ended September 30, 2011, and 2010, respectively. There were no impairment charges with respect to the purchased intangible assets in the three and nine months ended September 30, 2011, and 2010.

There were no purchased intangible assets added during the three months ended September 30, 2011. During the nine months ended September 30, 2011, the Company added $28.4 million of purchased intangible assets as a result of acquisitions completed during the first nine months of 2011. During the three and nine months ended September 30, 2010, the Company added $26.6 million and $38.8 million, respectively, of purchased intangible assets as a result of acquisitions completed during the first nine months of 2010.

Acquired in-process research and development (“IPR&D”) consists of existing research and development projects at the time of the acquisition. Projects that qualify as IPR&D assets represent those that have not yet reached technological feasibility and have no alternative future use. After initial recognition, acquired IPR&D assets are accounted for as indefinite-lived intangible assets. Development costs incurred after acquisition on acquired development projects are expensed as incurred. Upon completion of development, acquired IPR&D assets are considered amortizable finite-lived assets. If the IPR&D project is abandoned, the Company writes off the related purchased intangible asset in the period it is abandoned.

The estimated future amortization expense of purchased intangible assets with finite lives is as follows (in millions):



Years Ending December 31,	Amount
2011 (remaining three months)	$	6.6
2012	26.4
2013	26.1
2014	24.3
2015	19.3
Thereafter	19.4
Total	$	122.1

- 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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