Intangible Assets and Goodwill

3 Months Ended

Apr. 04, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Amortized intangible assets were comprised of the following:



	April 4, 2015				December 31, 2014
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Completed technology	$	54	$	29	$	37	$	27
Patents	8		4		8		4
Customer-related	15		8		15		8
Other intangibles	17		15		17		15
	$	94	$	56	$	77	$	54

Amortization expense on intangible assets was $2 million for the three months ended April 4, 2015 and $1 million for the three months ended March 29, 2014. As of April 4, 2015, annual amortization expense is estimated to be $7 million in 2015, 2016, and 2017, $6 million in 2018, $5 million in 2019, and $2 million in 2020.

Amortized intangible assets, excluding goodwill, were comprised of the following by segment:



	April 4, 2015				December 31, 2014
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Products	$	89	$	56	$	77	$	54
Services	5		—		—		—
	$	94	$	56	$	77	$	54

Goodwill

The following table displays a rollforward of the carrying amount of goodwill by segment from January 1, 2015 to April 4, 2015:



	Products		Services		Total
Balance as of January 1, 2015
Aggregate goodwill	$	264	$	119	$	383
Accumulated impairment losses	—		—		—
Goodwill, net of impairment losses	$	264	$	119	$	383
Goodwill acquired	7		—		7
Balance as of April 4, 2015
Aggregate goodwill	$	271	$	119	$	390
Accumulated impairment losses	—		—		—
Goodwill, net of impairment losses	$	271	$	119	$	390

On November 18, 2014, the Company completed the acquisition of an equipment provider for a purchase price of $22 million. During the three months ended April 4, 2015, the Company completed the purchase accounting for this acquisition, recognizing $7 million of goodwill and $12 million of identifiable intangible assets.

During the quarter ended April 4, 2015 the Company completed the acquisitions of two providers of public safety software-based solutions for an aggregate purchase price of $50 million. During the three months ended April 4, 2015, the Company recognized an additional $5 million of identifiable intangible assets related to one of the acquisitions. As of April 4, 2015, $44 million is included in Other assets in the Company's condensed consolidated balance sheet pending finalization of the purchase price allocation for the second acquisition.

The results of operations for these acquisitions have been included in the Company’s condensed consolidated statements of operations subsequent to the acquisition date. The pro forma effects of these acquisitions are not significant individually or in the aggregate.

- 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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