Goodwill and Intangible Assets, Net

9 Months Ended

Dec. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill activity for the nine months ended December 30, 2012 is as follows:



	Reportable Segment
(in thousands)	Communications			Computing and Consumer		Total
Balance as of April 1, 2012	$	74,673		$	21,419	$	96,092
Dispositions (1)	(700		)	—		(700		)
Additions (2)	49,737			—		49,737
Balance as of December 30, 2012	$	123,710		$	21,419	$	145,129


(1)	Represents goodwill of the divested Video processing business. See Note 4 for further details.


(2)	During the six months ended September 30, 2012, the Company acquired intangibles from Fox Enterprises, Alvand Technologies and NXP B.V.'s data converter business. See Note 3 for further details.

Intangible asset balances as of December 30, 2012 and April 1, 2012 are summarized as follows:



	December 30, 2012
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Existing technology	$	241,933	$	(200,191	)	$	41,742
Trademarks	4,411		(1,789		)	2,622
Customer relationships	131,930		(127,223		)	4,707
Other	4,200		(1,700		)	2,500
Total amortizable purchased intangible assets	382,474		(330,903		)	51,571
IPR&D	2,433		—			2,433
Total purchased intangible assets	$	384,907	$	(330,903	)	$	54,004



	April 1, 2012
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Existing technology	$	223,733	$	(192,105	)	$	31,628
Trademarks	2,911		(1,144		)	1,767
Customer relationships	127,231		(122,511		)	4,720
Total amortizable purchased intangible assets	353,875		(315,760		)	38,115
IPR&D	2,433		—			2,433
Total purchased intangible assets	$	356,308	$	(315,760	)	$	40,548

IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. The Company estimates that current IPR&D will be completed within the next 12 months. When the IPR&D project is complete, it is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life. If an IPR&D project is abandoned, the Company will record a charge for the carrying value of the related intangible asset to its Consolidated Statements of Operations in the period it is abandoned.

Amortization expense for the three months ended December 30, 2012 and January 1, 2012 was $4.7 million and $4.0 million, respectively. Amortization expense for the nine months ended December 30, 2012 and January 1, 2012 was $15.1 million and $12.1 million, respectively.

The intangible assets are being amortized over estimated useful lives of twelve months to seven years.

Based on the intangible assets recorded at December 30, 2012, and assuming no subsequent additions to or impairment of the underlying assets, the remaining estimated amortization expense is expected to be as follows (in thousands):



Fiscal Year	Amount
2013 (Remaining 3 months)	$	4,673
2014	17,184
2015	13,460
2016	8,448
2017 and thereafter	7,806
Total	$	51,571

- 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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