Goodwill and Intangible Assets

3 Months Ended

Sep. 27, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets [Text Block]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or more often if events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company performed the annual goodwill impairment analysis during the first quarter of fiscal year 2015 and concluded that goodwill was not impaired, as the fair value of each reporting unit exceeded its carrying value.

Activity and goodwill balances for the three months ended September 27, 2014 were as follows:



	Goodwill
	(in thousands)
Balance at June 28, 2014	$	596,637
Adjustments	(1,196		)
Balance at September 27, 2014	$	595,441

Intangible Assets

The useful lives of amortizable intangible assets are as follows:



Asset		Life
Intellectual property		3 months-10 years
Customer relationships		5-10 years
Trade name		3-4 years
Backlog		4 months
Patents		5 years

Intangible assets consisted of the following:



	September 27, 2014						June 28, 2014
	Original Cost		Accumulated Amortization		Net		Original Cost		Accumulated Amortization		Net
	(in thousands)
Intellectual property	$	435,962	$	220,389	$	215,573	$	435,962	$	201,581	$	234,381
Customer relationships	120,230		72,786		47,444		120,230		69,064		51,166
Tradename	8,500		3,686		4,814		8,500		3,269		5,231
Backlog	—		—		—		1,000		1,000		—
Patent	2,500		516		1,984		2,500		386		2,114
Total amortizable purchased intangible assets	567,192		297,377		269,815		568,192		275,300		292,892
IPR&D	68,102		—		68,102		68,102		—		68,102
Total purchased intangible assets	$	635,294	$	297,377	$	337,917	$	636,294	$	275,300	$	360,994

The following table presents the amortization expense of intangible assets and its presentation in the Condensed Consolidated Statements of Income:



	Three Months Ended
	September 27, 2014		September 28, 2013
	(in thousands)
Cost of goods sold	$	18,750	$	8,092
Intangible asset amortization	4,327		3,436
Total intangible asset amortization expenses	$	23,077	$	11,528

The following table represents the estimated future amortization expense of intangible assets as of September 27, 2014:



Fiscal Year	Amount
	(in thousands)
Remaining nine months of 2015	$	67,366
2016	74,454
2017	61,782
2018	41,927
2019	13,278
2020	3,358
Thereafter	7,650
Total intangible assets	$	269,815

- 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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