Goodwill And Purchased Intangibles

3 Months Ended

Apr. 01, 2016

Goodwill And Purchased Intangibles [Abstract]

Note 5 — Goodwill and Purchased Intangibles

Goodwill — We perform our annual test of impairment in our fourth quarter, or if indicators of impairment exist, in interim periods. Factors that could trigger a goodwill impairment review include adverse legal factors, adverse changes in our business climate, unanticipated competition, regulatory issues, loss of key personnel, significant changes or losses in business operations, weakness in our industry, downward revisions to forecasts for future periods, restructuring plans, and declines in market capitalization below equity book value.

There were no impairment triggers noted during the quarters ended April 1, 2016 or April 3, 2015, respectively.

Purchased Intangibles — Our intangible assets consisted of the following (in thousands):


	As of April 1, 2016
		Definite-lived: developed technologies		Definite-lived: other		Total purchased intangibles

Gross carrying amount	$	63,032	$	35,200	$	98,232
Accumulated amortization		38,094		31,159		69,253
Purchased intangibles, net	$	24,938	$	4,041	$	28,979

		As of January 1, 2016
		Definite-lived: developed technologies		Definite-lived: other		Total purchased intangibles

Gross carrying amount	$	63,032	$	46,700	$	109,732
Accumulated amortization		36,065		41,160		77,225
Purchased intangibles, net	$	26,967	$	5,540	$	32,507

Substantially all of our purchased intangibles consist of multiple elements of developed technology which have estimated useful lives of five to seven years. Other purchased intangibles consist primarily of customer relationships and other identifiable assets, which have an estimated useful life of three to seven years. No trigger requiring an impairment review was noted during the quarter ended April 1, 2016.

Expected remaining amortization expense by year to the end of the current amortization schedule is as follows (in thousands):


To be recognized in:
2016 (remaining 9 months)	$	8,206
2017		9,480
2018		4,362
2019		1,890
2020 and thereafter		5,041
Total expected amortization expense	$	28,979

- 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.

+ References + Details