In November 2023, we completed the acquisition of Cloud Light. We recognized preliminary goodwill of $360.8 million, which was allocated to the Cloud & Networking segment.


	Cloud & Networking		Industrial Tech		Total










Balances as of July 1, 2023	$	683.9	$	11.2	$	695.1
Acquisition of Cloud Light (1)	360.8		—		360.8

Balances as of March 30, 2024	$	1,044.7	$	11.2	$	1,055.9

(1) We recorded $359.5 million of goodwill as of the acquisition date and $1.3 million of measurement period adjustments to increase goodwill during the third quarter of fiscal 2024.

We review goodwill for impairment during the fourth quarter of each fiscal year or more frequently if events or circumstances indicate that an impairment loss may have occurred. In the fourth quarter of fiscal 2023, we completed the annual impairment test of goodwill, which indicated there was no goodwill impairment. There were no indicators of goodwill impairment during the three and nine months ended March 30, 2024.

Our intangible assets are amortized on a straight-line basis over the estimated useful lives, except for certain customer relationships, which are amortized using an accelerated method of amortization over the expected customer lives, more accurately reflecting the pattern of realization of economic benefits we expect to derive. Acquired developed technologies are amortized to cost of sales and research and development expenses. Acquired customer relationships are amortized to selling, general and administrative expenses in the consolidated statement of operations.

In-process research and development (“IPR&D”) is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When an IPR&D project is completed, the IPR&D is reclassified to an amortizable purchased intangible asset and amortized over the asset’s estimated useful life.

During the annual impairment testing performed in the fourth quarter of fiscal 2023, we concluded that our intangible and other long-lived assets were not impaired at the asset group level. We review our intangible and other long-lived assets for impairment at least annually in the fourth quarter of each fiscal year, absent any interim indicators of impairment. There were no indicators of impairment at the asset group level during the three and nine months ended March 30, 2024.

In November 2023, we completed the acquisition of Cloud Light. The intangible assets acquired from the acquisition were as follows as of the acquisition date (in millions, except for weighted average amortization period):


	Fair Value at the Acquisition Date		Weighted Average Amortization Period (Years)
Acquired developed technologies	$	170.0	7.0
Customer relationships	130.0		7.0
In-process research and development	16.0		n/a
Order backlog	14.0		1.0
Trade name and trademarks	3.0		1.2
Total intangible assets	$	333.0

In August 2022, we completed the NeoPhotonics acquisition and the acquisition of IPG telecom transmission product lines. The intangible assets acquired from the acquisitions were as follows as of the acquisition date (in millions, except for weighted average amortization period):


	Fair Value at the Acquisition Date						Weighted Average Amortization Period (Years)
	NeoPhotonics		IPG Telecom Transmission Product Lines		Total Acquired
Acquired developed technologies	$	220.0	$	8.6	$	228.6	5.2
Customer relationships	144.5		2.3		146.8		5.9
In-process research and development	48.0		29.1		77.1		n/a


Total intangible assets	$	412.5	$	40.0	$	452.5

Refer to “Note 4. Business Combinations” for the acquisitions of Cloud Light, NeoPhotonics and IPG telecom transmission product lines.

The following tables present details of all of our intangible assets as of the periods presented (in millions, except for weighted average remaining amortization period):


March 30, 2024	Gross Carrying Amounts		Accumulated Amortization		Net Carrying Amounts		Weighted Average Remaining Amortization Period (Years)
Acquired developed technologies	$	807.8	$	(450.1)	$	357.7	5.0
Customer relationships	419.8		(154.5)		265.3		5.2
In-process research and development	54.9		—		54.9		n/a
Order backlog	14.0		(5.4)		8.6		0.6
Trade name and trademarks	3.0		(1.0)		2.0		0.8
Total intangible assets	$	1,299.5	$	(611.0)	$	688.5


July 1, 2023	Gross Carrying Amounts		Accumulated Amortization		Net Carrying Amounts		Weighted Average Remaining Amortization Period (Years)
Acquired developed technologies	$	630.9	$	(385.5)	$	245.4	4.2
Customer relationships	289.7		(116.8)		172.9		3.7
In-process research and development	40.9		—		40.9		n/a


Total intangible assets	$	961.5	$	(502.3)	$	459.2


	Three Months Ended				Nine Months Ended
	March 30, 2024		April 1, 2023		March 30, 2024		April 1, 2023
Cost of sales	$	22.3	$	18.7	$	61.8	$	66.4
Research and development	0.4		—		1.1		—
Selling, general and administrative	19.4		11.3		45.8		31.9
Total amortization of intangibles	$	42.1	$	30.0	$	108.7	$	98.3

Based on the carrying amount of our acquired intangible assets except in-process research and development as of March 30, 2024, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions):


Fiscal Years
Remainder of 2024	$	41.7
2025	147.5
2026	131.5
2027	118.7
2028	80.5
Thereafter	113.7
Total future amortization	$	633.6