Goodwill and Intangible Assets, Net

9 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill balances by reportable segment as of December 31, 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 December 31, 2017	$	141,300	$	278,817	$	420,117

Goodwill balances as of December 31, 2017 and April 2, 2017 were net of $920.3 million in accumulated impairment losses.

Intangible asset balances as of December 31, 2017 and April 2, 2017 are summarized as follows:



	December 31, 2017
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Developed technology	$	336,402	$	(217,529	)	$	118,873
Trademarks	5,391		(5,391		)	—
Customer relationships	201,998		(146,374		)	55,624
Intellectual property licenses	14,886		(6,452		)	8,434
Software license	7,831		(2,852		)	4,979
Order backlog	200		(150		)	50
Total amortizable purchased intangible assets	566,708		(378,748		)	187,960
In-process research and development (IPR&D)	9,017		—			9,017
Total purchased intangible assets	$	575,725	$	(378,748	)	$	196,977



	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

During the three months ended December 31, 2017, $1.2 million of purchased IPR&D projects from GigPeak acquisition reached technological feasibility and was reclassified as core and developed technology and began being amortized over its estimated useful life. As of December 31, 2017, the Company had $9.0 million of IPR&D assets remaining on the Condensed Consolidated Balance Sheet.

In the second quarter of fiscal 2017, the Company purchased $4.8 million software licenses. As a result of an asset acquisition on August 10, 2017, the Company recognized developed technology with fair value of $17.0 million. Refer to Note 3 for details.

Amortization expense for the three months ended December 31, 2017 and January 1, 2017 was 10.4 million and $6.5 million, respectively. Amortization expense for the nine months ended December 31, 2017 and January 1, 2017 was $32.0 million and $18.3 million, respectively. 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.

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

Based on the intangible assets recorded as of December 31, 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 3 months)	$	10,400
2019	41,156
2020	40,778
2021	39,695
2022 and thereafter	55,931
Total amortizable purchased intangible assets	187,960
IPR&D	9,017
Total intangible assets	$	196,977

- 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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