Other Intangible Assets

12 Months Ended

Jul. 01, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

OTHER INTANGIBLE ASSETS

Additions and Dispositions

In connection with our acquisition of Opnext on July 23, 2012, we recorded $16.4 million in other intangible assets as our estimate of the fair value of acquired intangible assets. The intangible assets acquired from Opnext consist of $8.7 million of developed technology with an estimated weighted average useful life of 6 years, $0.2 million of contract backlog with an estimated weighted average useful life of 1 year, $4.9 million of customer relationships with an estimated weighted average useful life of 11 years, and $2.7 million of trademarks and other with an estimated weighted average useful life of 6 years.

In connection with our sale of the Komoro Business, we transferred certain of our other intangible assets with a book value of $4.4 million to Ushio Opto during fiscal year 2015.

Impairment Assessments

During the fourth quarter of fiscal year 2017 and 2016, we reviewed our other intangible assets for impairment. We compared their carrying amounts to market prices or the future undiscounted cash flows the assets are expected to generate. We determined that the carrying value of the assets did not exceed the fair value based on market prices or future discounted cash flows. We did not record any impairment charges related to our other intangibles in fiscal year 2017 or 2016.

Amortization

Amortization of other intangible assets for the fiscal years ended July 1, 2017, July 2, 2016 and June 27, 2015, was $0.8 million, $1.0 million and $1.1 million, respectively. Amortization is recorded as an operating expense within the consolidated statements of operations.

In the fourth quarter of fiscal year 2015, we revised the estimated useful lives of certain of our other intangible assets related to our integrated photonics product line to adjust for the shorter time period in which we expect to benefit from these other intangible assets.

Estimated future amortization expense of other intangible assets is as follows, based on the current level of our other intangible assets as of July 1, 2017:



	Estimated Future Amortization
	(Thousands)
Fiscal Year:
2018	$	649
2019	50
2020	—
2021	—
2022	—
Thereafter	—
	$	699

The following table summarizes the activity related to our other intangible assets for fiscal years ended July 1, 2017, July 2, 2016 and June 27, 2015:



	Core and Current Technology			Development and Supply Agreements			Customer Relationships			Patent Portfolio		Other Intangibles		Amortization			Total
	(Thousands)
Balance at June 28, 2014	$	8,267		$	4,660		$	5,143		$	915	$	3,338	$	(13,787	)	$	8,536
Sale of Komoro Business	(1,904		)	—			(2,545		)	—		—		—			(4,449		)
Amortization	—			—			—			—		—		(1,133		)	(1,133		)
Translations and adjustments	(114		)	(65		)	(196		)	—		—		—			(375		)
Balance at June 27, 2015	6,249			4,595			2,402			915		3,338		(14,920		)	2,579
Amortization	—			—			—			—		—		(995		)	(995		)
Translations and adjustments	—			(86		)	—			—		—		—			(86		)
Balance at July 2, 2016	6,249			4,509			2,402			915		3,338		(15,915		)	1,498
Amortization	—			—			—			—		—		(786		)	(786		)
Translations and adjustments	—			(13		)	—			—		—		—			(13		)
Balance at July 1, 2017	$	6,249		$	4,496		$	2,402		$	915	$	3,338	$	(16,701	)	$	699

- 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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