Intangible Assets

Intangible assets and amortization.

The table below presents the balances of our intangible assets (in thousands):

	February 3, 2018			January 28, 2017

Acquired intangible assets	$	79,916		$	88,910
Purchased IP		30,138			42,500
Total		110,054			131,410
Accumulated amortization		(105,424	)		(100,666	)
Total intangible assets, net		4,630			30,744
Less: Assets held for sale		(2,079	)		(2,439	)
Intangible assets, net	$	2,551		$	28,305

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.

We begin amortizing intangible assets 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.

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

	February 3, 2018			January 28, 2017			January 30, 2016

Cost of revenue	$	3,744		$	7,267		$	7,586
Operating expenses		1,700			2,586			1,801
Less: Discontinued operations		(1,623	)		(4,966	)		(5,697	)
Intangible amortization expense	$	3,821		$	4,887		$	3,690

As of

February 3, 2018,

we expect the amortization expense in future periods to be as follows (in thousands):

Fiscal years	Purchased IP - Amortizing			Developed Technology		Customer Relationships		Trademarks and Other			Total

2019		2,920			-		-		100			3,020
2020		-			-		-		-			-
2021		-			-		-		-			-
2022		-			-		-		-			-
2023		-			-		-		-			-
Thereafter		-			-		-		-			-
Less: Discontinued operations		(734	)		-		-		(100	)		(834	)
Amortization expense	$	2,186		$	-	$	-	$	-		$	2,816

Impairment of intangible assets

We test long-lived assets, including purchased intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of these assets

may

not

be recoverable. As a part our Fiscal

2018

Plan, we determined that the carrying value of intangible intellectual property assets were

not

recoverable. Accordingly, we recorded non-cash asset impairment for purchased IP of

$9.0

million. Additionally, as part of our valuation assessment at year end, we recorded non-cash impairment charges for purchased IP of

$6.1

million.

Our review during fiscal

2017

indicated that certain purchased IP licenses were impaired. As a result, we recorded impairment charges for purchased IP of

$0.8

million.

Intangible assets were as follows (in thousands, except for years):

	February 3, 2018
	Gross Value		Impairment			Accumulated Amortization and Effect of Currency Translation			Net Value			Weighted Average Remaining Amortization Period (Years)

Acquired intangible assets:
Developed technology	$	85,427	$	(31,029	)	$	(54,398	)	$	-
Customer relationships		54,505		(33,065	)		(21,440	)		-
Trademarks and other		4,078		-			(3,978	)		100			0.83
Purchased IP - amortizing		38,250		(9,722	)		(25,608	)		2,920			0.74
Total amortizing		182,260		(73,816	)		(105,424	)		3,020
Purchased IP - not yet deployed		18,513		(16,093	)		-			1,610
Total intangibles	$	200,813	$	(90,719	)	$	(105,424	)		4,630
Less: Assets held for sale										(2,079	)
Intangibles									$	2,551

	January 28, 2017
	Gross Value		Impairment			Accumulated Amortization and Effect of Currency Translation			Net Value			Weighted Average Remaining Amortization Period (Years)

Acquired intangible assets:
Developed technology	$	85,427	$	(24,614	)	$	(52,854	)	$	7,959			7.4
Customer relationships		54,505		(30,486	)		(20,897	)		3,122			5.8
Trademarks and other		4,078		-			(3,858	)		220			1.9
Purchased IP - amortizing		36,007		(5,516	)		(23,057	)		7,434			2.3
Total amortizing		180,017		(60,616	)		(100,666	)		18,735
Purchased IP - not yet deployed		16,449		(4,440	)		-			12,009
Total intangibles	$	196,466	$	(65,056	)	$	(100,666	)		30,744
Less: Assets held for sale										(2,439	)
Intangibles									$	28,305