Goodwill & Intangible Assets

12 Months Ended

Sep. 29, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill & Intangible Assets

Goodwill

The following table outlines changes to the carrying amount of goodwill (in thousands):



	Goodwill
Balance at September 25, 2015	$	307,708
Translation adjustments	1,908
Balance at September 30, 2016	$	309,616
Translation adjustments	1,471
Balance at September 29, 2017	$	311,087

Intangible Assets

Intangible assets are stated at their original cost less accumulated amortization. Intangible assets subject to amortization consisted of the following (in thousands):



	September 29, 2017							September 30, 2016
Intangible Assets, Net	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Acquired patents and technology	$	299,707	$	(128,986	)	$	170,721	$	293,824	$	(101,711	)	$	192,113
Customer relationships	56,843		(38,368		)	18,475		56,821		(34,113		)	22,708
Other intangibles	22,742		(22,290		)	452		22,716		(22,195		)	521
Total	$	379,292	$	(189,644	)	$	189,648	$	373,361	$	(158,019	)	$	215,342

During fiscal 2017 and 2016, we purchased various patents and developed technology for cash consideration of $5.3 million and $121.0 million, and upon acquisition, these intangible assets had a weighted-average useful life of 18.0 years and 10.1 years, respectively. These acquisitions facilitate our R&D efforts, technologies and potential product offerings. Included within the total patent purchases made during fiscal 2016 was the acquisition of a large individual patent portfolio that fits within our existing patent licensing programs in exchange for consideration of $105.0 million. These assets are categorized within the "Acquired patents and technology" intangible asset class, and are being amortized over their weighted-average useful life of 9.0 years.

Amortization expense for our intangible assets is included in cost of licensing, cost of products, R&D and S&M expenses in our consolidated statements of operations. Amortization expense was $30.9 million, $33.2 million, and $21.0 million in fiscal 2017, 2016 and 2015, respectively. As of September 29, 2017, expected amortization expense of our intangible assets in future periods was as follows (in thousands):



Fiscal Year	Amortization Expense
2018	$	25,581
2019	24,908
2020	24,445
2021	24,418
2022	22,191
Thereafter	68,105
Total	$	189,648

- 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