Goodwill and Intangible Assets

12 Months Ended

Jan. 28, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill – Changes in the carrying amount of goodwill by applicable reporting unit were as follows:



(in thousands)	Signal Integrity		Power and High-Reliability		Wireless and Sensing		Total
Balance at January 29, 2017	$	261,891	$	49,384	$	18,428	$	329,703
Additions	12,194		—		—		12,194
Balance at January 28, 2018	$	274,085	$	49,384	$	18,428	$	341,897

During the second quarter of fiscal year 2018, goodwill associated with the Signal Integrity Products Group increased due to the Company’s acquisition of AptoVision (see Note 3).

Goodwill is not amortized, but is tested for impairment using either a qualitative assessment or a two-step method on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The recoverability 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.

Goodwill is allocated to three reporting units (Signal Integrity, Power and High-Reliability and Wireless and Sensing) (see Note 15). The difference between the fair value and the carrying amount of these reporting units is one of several factors the Company will consider before reaching its conclusion about whether to perform the first step of the goodwill impairment test.

Goodwill was tested for impairment at the reporting unit level as of November 30, 2017 and November 30, 2016, the dates of the Company’s annual impairment review for fiscal years 2018 and 2017, respectively.

For fiscal years 2018 and 2017, the Company performed a qualitative assessment and concluded that it was more likely than not that the fair value of each of the three reporting units exceeded its carrying value. As such, the Company did not perform a quantitative impairment analysis.

In addition to its annual review, the Company performs a test of impairment when indicators of impairment are present. As of January 28, 2018 and January 29, 2017, there were no indications of impairment of the Company's goodwill balances.

Acquired Intangibles - The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions and technology licenses purchased, which continue to be amortized:



		January 28, 2018							January 29, 2017
(in thousands)	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core technologies	5-8 years	$	164,930	$	(115,628	)	$	49,302	$	144,930	$	(92,940	)	$	51,990
Customer relationships	3-10 years	34,031		(25,426		)	8,605		30,030		(20,247		)	9,783
Total finite-lived intangible assets		$	198,961	$	(141,054	)	$	57,907	$	174,960	$	(113,187	)	$	61,773

Amortization expenses recorded in the Statements of Income for each period were as follows:



(in thousands)	January 28, 2018		January 29, 2017		January 31, 2016
Core technologies	$	22,688	$	20,901	$	20,692
Customer relationships	5,179		4,400		4,367
Total amortization expense	$	27,867	$	25,301	$	25,059

Future amortization expense by operating segment is expected to be as follows:



(in thousands)
To be recognized in:	Core Technologies		Customer relationships		Total
Fiscal year 2019	$	20,666	$	5,733	$	26,399
Fiscal year 2020	13,239		2,283		15,522
Fiscal year 2021	6,389		589		6,978
Fiscal year 2022	3,905		—		3,905
Fiscal year 2023	3,714		—		3,714
Thereafter	1,389		—		1,389
Total expected amortization expense	$	49,302	$	8,605	$	57,907

The following table sets forth the Company’s indefinite-lived intangible assets resulting from additions to IPR&D:



(in thousands)	Net Carrying Amount
Value at January 31, 2016	$	—
Value at January 29, 2017	—
In-process research and development through acquisitions	2,300
Value at January 28, 2018	$	2,300

The Company reviews indefinite-lived intangible assets for impairment as of November 30, each year, by comparing the carrying amount of the asset to the future discounted cash flows that asset is expected to generate.

- 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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