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Goodwill and Intangible Assets
 9 Months Ended
Oct. 27, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
The carrying amounts of goodwill by applicable operating segment were as follows:
(in thousands)Signal Integrity
Analog Mixed Signal and Wireless
IoT Systems and ConnectivityTotal
Balance at January 28, 2024$267,205 $83,101 $190,921 $541,227 
Cumulative translation adjustment— — 56 56 
Balance at October 27, 2024$267,205 $83,101 $190,977 $541,283 
In the first quarter of fiscal year 2025, as a result of organizational restructuring, the Company combined the IoT Systems operating segment and the IoT Connected Services operating segment into the newly formed IoT Systems and Connectivity operating segment. There was no change to the reporting units. See Note 15, Segment Information, for further discussion of the Company's operating segments.
Goodwill is not amortized, but is tested for impairment at the reporting unit level using either a qualitative or quantitative assessment on an annual basis during the fourth quarter of each fiscal year, and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment of goodwill is measured at the reporting unit level by comparing the reporting unit's carrying amount, including goodwill, to the fair market value of the reporting unit. As of October 27, 2024, there was no indication of impairment of the Company's goodwill balances and no goodwill impairment was recorded in the nine months ended October 27, 2024.
During the second quarter of fiscal year 2024, as a result of reduced earnings forecasts associated with the business acquired from Sierra Wireless and macroeconomic conditions, including a rising interest rate environment, the Company performed an interim impairment test using a quantitative assessment of the reporting units related to the Sierra Wireless Acquisition (specifically, the IoT Connected Services, IoT System–Modules and IoT System–Routers reporting units). The interim impairment test resulted in $279.6 million of total pre-tax non-cash goodwill impairment charges recorded in the Statements of Operations during the second quarter of fiscal year 2024, consisting of $69.0 million of goodwill impairment for the IoT Connected Services reporting unit, $109.9 million of goodwill impairment for the IoT System–Modules reporting unit and $100.7 million goodwill impairment for the IoT System–Routers reporting unit. The fair values of these reporting units were determined based on a discounted cash flow model (an income approach) and earnings multiples (a market approach). Significant inputs to the reporting unit fair value measurements included forecasted cash flows, discount rates, terminal growth rates and earnings multiples, which were determined by management estimates and assumptions. The reporting unit fair value measurements are classified as Level 3 in the fair value hierarchy because they involve significant unobservable inputs.
Purchased and Other Intangibles
The following table sets forth the Company's finite-lived intangible assets, which are amortized over their estimated useful lives:
 October 27, 2024
(in thousands, except estimated useful life)Estimated
Useful Life		Gross
Carrying
Amount		Accumulated
Amortization		Accumulated ImpairmentNet Carrying
Amount
Core technologies
1-8 years
$154,914 $(41,893)$(91,792)$21,229 
Customer relationships
1-10 years
52,250 (13,713)(34,777)3,760 
Trade name
2-10 years
9,000 (3,092)(4,816)1,092 
Capitalized development costs
3 years
295 (74)— 221 
Software licenses7 years200 (7)— 193 
Total finite-lived intangible assets$216,659 $(58,779)$(131,385)$26,495 
January 28, 2024
(in thousands, except estimated useful life)Estimated
Useful Life		Gross
Carrying
Amount		Accumulated
Amortization		Accumulated ImpairmentNet Carrying
Amount
Core technologies
1-8 years
$154,985 $(35,130)$(91,792)$28,063 
Customer relationships
1-10 years
52,272 (13,391)(34,777)4,104 
Trade name
2-10 years
9,000 (2,700)(4,816)1,484 
Total finite-lived intangible assets$216,257 $(51,221)$(131,385)$33,651 
Amortization expense of finite-lived intangible assets was as follows:
Three Months EndedNine Months Ended
(in thousands)October 27, 2024October 29, 2023October 27, 2024October 29, 2023
Core technologies$2,281 $10,008 $6,841 $31,436 
Customer relationships116 4,061 345 12,231 
Trade name33 792 392 2,375 
Capitalized development costs25 — 74 — 
Software licenses7 — 7 — 
Total amortization expense$2,462 $14,861 $7,659 $46,042 
Amortization expense of finite-lived intangible assets related to core technologies was recorded in "Amortization of acquired technology" within "Total cost of sales" in the Statements of Operations, and amortization expense of finite-lived intangible assets related to customer relationships and trade name was recorded in "Intangible amortization" within "Total operating expenses, net" in the Statements of Operations. Amortization expense of finite-lived intangible assets related to software licenses was recorded in "Cost of sales" in the Statements of Operations and amortization expense of finite-lived intangible assets related to capitalized development costs was recorded in "Product development and engineering" in the Statements of Operations.
Future amortization expense of finite-lived intangible assets is expected as follows:
(in thousands)Core TechnologiesCustomer RelationshipsTrade NameCapitalized Development CostsSoftware LicensesTotal
2025 (remaining three months)$2,267 $114 $33 $25 $7 $2,446 
20268,605 458 133 98 29 9,323 
20273,713 458 133 98 29 4,431 
20283,557 458 133 — 29 4,177 
20293,087 383 133 — 29 3,632 
Thereafter— 1,889 527 — 70 2,486 
Total expected amortization expense$21,229 $3,760 $1,092 $221 $193 $26,495 
Also in "Other intangible assets, net" in the Balance Sheets, are finite-lived intangible assets to be amortized upon placement in service. The following table sets forth the Company's finite-lived intangible assets not yet placed in service:
(in thousands)Capitalized Development CostsSoftware LicensesTotal
Balance at January 28, 2024$1,000 $915 $1,915 
Additions523 8,375 8,898 
Placed in service(295)(200)(495)
Balance at October 27, 2024$1,228 $9,090 $10,318