Goodwill and Intangible Assets, Net

9 Months Ended

Jan. 03, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill balances by reportable segment as of January 3, 2016 and March 29, 2015 are as follows:



	Reportable Segment
(in thousands)	Communications		Computing, Consumer and Industrial		Total
Balance as of March 29, 2015	$	122,248	$	13,396	$	135,644
Addition - ZMDI acquisition (see Note 3)	—		170,089		170,089
Balance as of January 3, 2016	$	122,248	$	183,485	$	305,733

Goodwill balances as of January 3, 2016 and March 29, 2015 are net of $920.3 million and $922.5 million, respectively, in accumulated impairment losses.

Intangible asset balances as of January 3, 2016 and March 29, 2015 are summarized as follows:



	January 3, 2016
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Existing technology	$	279,514	$	(201,992	)	$	77,522
Trademarks	5,211		(4,274		)	937
Customer relationships	172,787		(129,146		)	43,641
Intellectual property licenses	11,400		(1,324		)	10,076
Backlog	5,800		(487		)	5,313
Total purchased intangible assets	$	474,712	$	(337,223	)	$	137,489



	March 29, 2015
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Existing technology	$	211,170	$	(206,491	)	$	4,679
Trademarks	4,411		(3,850		)	561
Customer relationships	131,045		(130,750		)	295
Total purchased intangible assets	$	346,626	$	(341,091	)	$	5,535

As a result of the acquisition of ZMDI, the Company recognized additional intangible assets with total original value of $126.2 million during the three months ended January 3, 2016 (see Note 3).

During the three months ended January 3, 2016, the Company purchased an intangible asset with a cost of $1.5 million and an average estimated useful life of 3 years. During the three months ended September 27, 2015, the Company individually purchased intangible assets with a total cost of $9.9 million and an average estimated useful life of 6.25 years. These intangible assets are comprised of intellectual property licenses that are being used by the Company in the development, manufacture and sale of certain products.

Amortization expense for the three months ended January 3, 2016 and December 28, 2014 was $3.2 million and $1.3 million, respectively. Amortization expense for the nine months ended January 3, 2016 and December 28, 2014 was $5.6 million for each of the periods.

During the first quarter of fiscal 2015, the Company recorded an impairment charge relating to the HSC assets held for sale of $5.6 million, which consisted of existing technology of $4.6 million, customer relationships of $0.9 million and non-compete agreements of $0.1 million. Refer to Note 4 for additional information.

The intangible assets are being amortized over estimated useful lives of 1 to 7.5 years.

Based on the intangible assets recorded at January 3, 2016, 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
2016 (Remaining 3 months)	$	7,150
2017	25,651
2018	19,322
2019	18,868
2020 and thereafter	66,498
Total purchased intangible assets	$	137,489

- 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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