Goodwill and Intangible Assets, Net

6 Months Ended

Oct. 02, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill balances by reportable segment as of October 2, 2016 and April 3, 2016 are as follows:



	Reportable Segments
(in thousands)	Communications			Computing, Consumer and Industrial		Total
Balance as of April 3, 2016	$	122,848		$	182,885	$	305,733
Impairment - the Disposal Group (see Note 5)	(161		)	—		(161		)
Additions - Synkera acquisition (see Note 3)	—			1,353		1,353
Balance as of October 2, 2016	$	122,687		$	184,238	$	306,925

Goodwill balances as of October 2, 2016 and April 3, 2016 are net of $920.5 million and $920.3 million, respectively, in accumulated impairment losses.

Intangible asset balances as of October 2, 2016 and April 3, 2016 are summarized as follows:



	October 2, 2016
(in thousands)	Gross Assets		Impairment		Accumulated Amortization			Net Assets
Purchased intangible assets:
Developed technology	$	280,484	(315	)	$	(211,733	)	$	68,436
Trademarks	5,391		—		(5,129		)	262
Customer relationships	173,097		(21	)	(133,973		)	39,103
Intellectual property licenses	11,550		—		(2,835		)	8,715
Order backlog	5,800		—		(5,130		)	670
Total purchased intangible assets	$	476,322	(336	)	$	(358,800	)	$	117,186



	April 3, 2016
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Developed technology	$	279,514	$	(205,307	)	$	74,207
Trademarks	5,211		(4,576		)	635
Customer relationships	172,787		(130,745		)	42,042
Intellectual property licenses	11,400		(1,819		)	9,581
Order backlog	5,800		(4,504		)	1,296
Total purchased intangible assets	$	474,712	$	(346,951	)	$	127,761

As a result of the acquisition of Synkera, the Company recognized additional intangible assets with total original value of $1.4 million during the three months ended October 2, 2016 (see Note 3).

Amortization expense for the three months ended October 2, 2016 and September 27, 2015 was $5.8 million and $1.6 million, respectively. Amortization expense for the six months ended October 2, 2016 and September 27, 2015 was $11.8 million and $2.5 million, respectively.

During the first quarter of fiscal 2017, the Company recorded an impairment charge of $0.2 million and $0.3 million in the carrying value of goodwill and intangible assets, respectively, as a result of reclassifying a disposal group as held for sale. Refer to Note 5 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 October 2, 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
2017 (Remaining 6 months)	$	11,343
2018	19,669
2019	19,211
2020	18,785
2021 and thereafter	48,178
Total purchased intangible assets	$	117,186

- 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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