Goodwill and Acquired Intangible Assets, Net

3 Months Ended

May 02, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets, Net

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired in a business combination. The carrying value of goodwill as of May 2, 2020 and February 1, 2020 is $5.3 billion. See “Note 3 - Business Combinations” for discussion of the acquisitions.

Acquired Intangible Assets, Net

In connection with the Cavium acquisition on July 6, 2018, the Aquantia acquisition on September 19, 2019 and the Avera acquisition on November 5, 2019, the Company acquired $3.3 billion of intangible assets. As of May 2, 2020 and February 1, 2020, net carrying amounts are as follows (in thousands, except for weighted-average remaining amortization period):


	May 2, 2020
	Gross Carrying Amounts		Accumulated Amortization		Net Carrying Amounts		Weighted-Average Remaining Amortization Period (Years)
Developed technologies	$	2,511,000	$	(500,301)	$	2,010,699	6.18
Customer contracts and related relationships	643,000		(153,916)		489,084		6.36
Trade names	23,000		(10,105)		12,895		2.75
Total acquired amortizable intangible assets	$	3,177,000	$	(664,322)	$	2,512,678	6.20
IPR&D	139,000		—		139,000		n/a
Total acquired intangible assets	$	3,316,000	$	(664,322)	$	2,651,678


	February 1, 2020
	Gross Carrying Amounts		Accumulated Amortization		Net Carrying Amounts		Weighted-Average Remaining Amortization Period (Years)
Developed technologies	$	2,511,000	$	(413,735)	$	2,097,265	6.41
Customer contracts and related relationships	643,000		(128,939)		514,061		6.61
Trade names	23,000		(8,726)		14,274		2.96
Total acquired amortizable intangible assets	$	3,177,000	$	(551,400)	$	2,625,600	6.43
IPR&D	139,000		—		139,000		n/a
Total acquired intangible assets	$	3,316,000	$	(551,400)	$	2,764,600

The intangible assets are amortized on a straight-line basis over the estimated useful lives, except for certain Cavium customer contracts and related relationships, which are amortized using an accelerated method of amortization over the expected customer lives, which more closely align with the pattern of realization of economic benefits expected to be obtained. The IPR&D will be accounted for as an indefinite-lived intangible asset and will not be amortized until the underlying projects reach technological feasibility and commercial production at which point the IPR&D will be amortized over the estimated useful life. Useful lives for these IPR&D projects are expected to range between 3 to 10 years. In the event the IPR&D is abandoned the related assets will be written off.

Amortization for acquired intangible assets for the three months ended May 2, 2020 was $112.9 million. Amortization expense for acquired intangible assets for the three months ended May 4, 2019 was $79.7 million.

The following table presents the estimated future amortization expense of acquired amortizable intangible assets as of May 2, 2020 (in thousands):


Fiscal Year	Amount
Remainder of 2021	$	338,764
2022	441,969
2023	428,891
2024	399,920
2025	354,012
Thereafter	549,122
	$	2,512,678