Note 9. Intangible Assets

9 Months Ended

Nov. 02, 2013

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

9.             Intangible assets

Intangible assets at the end of each period consisted of the following (in thousands, except for years):

	November 2, 2013
	Gross Value		Accumulated Amortization and Effect of Currency Translation			Net Value		Weighted Average Remaining Amortization Period (Years)
Acquired intangible assets:
Developed technology	$	52,025	$	(38,908	)	$	13,117		3.1
Customer relationships		20,218		(16,730	)		3,488		2.9
Trademarks		2,678		(2,074	)		604		5.1
Non-compete agreements		1,400		(1,400	)		-		-
Purchased IP - amortizing		16,053		(10,603	)		5,450		1.7
Total amortizing		92,374		(69,715	)		22,659		2.8
Purchased IP - not yet deployed		9,037		-			9,037
Total intangibles	$	101,411	$	(69,715	)	$	31,696

	February 2, 2013
	Gross Value		Accumulated Amortization and Effect of Currency Translation			Net Value		Weighted Average Remaining Amortization Period (Years)
Acquired intangible assets:
Developed technology	$	52,025	$	(34,567	)	$	17,458		3.6
Customer relationships		20,218		(15,782	)		4,436		3.6
Trademarks		2,678		(1,983	)		695		5.9
Non-compete agreements		1,400		(1,400	)		-		-
Purchased IP – amortizing		15,854		(7,970	)		7,884		2.4
Total amortizing		92,175		(61,702	)		30,473		3.4
Purchased IP - not yet deployed		6,100		-			6,100
Total intangibles	$	98,275	$	(61,702	)	$	36,573

Acquired intangible assets represent intangible assets acquired through business combinations. Purchased intellectual property (“Purchased IP”) represents intangible assets acquired through direct purchases of licensed technology from vendors which is incorporated into our products.

Purchased IP – not yet deployed relates to Purchased IP from third parties for our products that are currently in development. We begin amortizing such intellectual property upon the earlier of the beginning of the term of the license agreement, as appropriate, or at the time we begin shipment of the associated products into which such intellectual property is incorporated.

We test long-lived assets, including our intangible assets, for impairment whenever events or changes in circumstances, such as a change in technology, indicate that the carrying value of these assets may not be recoverable.

Amortization expense related to intangible assets was $2.6 million and $8.0 million for the three and nine months ended November 2, 2013, respectively, and $3.1 million and $8.0 million for the three and nine months ended October 27, 2012, respectively.  As of November 2, 2013, we had $9.0 million of Purchased IP, which we have not yet begun to amortize.

The following table presents the amortization of intangible assets in the accompanying condensed consolidated statements of operations (in thousands):

	Three Months Ended				Nine Months Ended
	November 2, 2013		October 27, 2012		November 2, 2013		October 27, 2012
Cost of sales	$	2,257	$	2,647	$	6,848	$	6,716
Operating expenses		383		403		1,165		1,208
Total intangibles amortization expense	$	2,640	$	3,050	$	8,013	$	7,924

The estimated future amortization expense of intangible assets with finite lives as of November 2, 2013 is as follows (in thousands): 

Fiscal year	Total
2014 (remaining three months)	$	2,636
2015		8,800
2016		6,574
2017		3,912
2018		636
Thereafter		101
Total	$	22,659