Goodwill and Intangible Assets, Net

3 Months Ended

Jul. 02, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill balances by reportable segment as of July 2, 2017 and April 2, 2017 are as follows:



	Reportable Segments
(in thousands)	Communications		Computing, Consumer and Industrial		Total
Balance as of April 2, 2017	$	122,687	$	184,238	$	306,925
Additions - GigPeak acquisition (see Note 3)	18,613		94,579		113,192
Balance as of July 2, 2017	$	141,300	$	278,817	$	420,117

Goodwill balances as of July 2, 2017 and April 2, 2017 were net of $920.3 million in accumulated impairment losses.

Intangible asset balances as of July 2, 2017 and April 2, 2017 are summarized as follows:



	July 2, 2017
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Developed technology	$	318,184	$	(205,583	)	$	112,601
Trademarks	5,391		(5,391		)	—
Customer relationships	201,997		(140,289		)	61,708
Intellectual property licenses	14,886		(4,860		)	10,026
Software license	3,063		(2,307		)	756
Order backlog	200		(50		)	150
Total amortizable purchased intangible assets	543,721		(358,480		)	185,241
In-process research and development	10,200		—			10,200
Total purchased intangible assets	$	553,921	$	(358,480	)	$	195,441



	April 2, 2017
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Developed technology	$	262,184	$	(199,851	)	$	62,333
Trademarks	5,391		(5,347		)	44
Customer relationships	173,097		(137,239		)	35,858
Intellectual property licenses	16,196		(5,613		)	10,583
Total purchased intangible assets	$	456,868	$	(348,050	)	$	108,818

As a result of the acquisition of GigPeak, the Company recognized additional intangible assets with fair value of $97.9 million during the three months ended July 2, 2017 (see Note 3). During the first quarter of fiscal 2018, the Company recorded an accelerated amortization charge of $2.0 million related to certain software licenses as the estimated future cash flows expected resulting from the use of the assets were less than the carrying amount.

Amortization expense for the three months ended July 2, 2017 and July 3, 2016 was $11.7 million and $6.1 million, respectively.

The intangible assets are being amortized over estimated useful lives of 1 to 7 years.

Based on the intangible assets recorded at July 2, 2017, 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
2018 (Remaining 9 months)	$	28,017
2019	36,943
2020	36,688
2021	36,317
2022 and thereafter	47,276
Total amortizable purchased intangible assets	185,241
In-process research and development	10,200
Total intangible assets	$	195,441

- 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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