Goodwill and Intangible Assets

9 Months Ended

Oct. 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		Wireless and Sensing		Protection		Total
Balance at January 28, 2018	$	274,085	$	67,812	$	—	$	341,897
Additions	—		8,500		4,778		13,278
Balance at October 28, 2018	$	274,085	$	76,312	$	4,778	$	355,175

As a result of the realignment of its operating segments, during the first quarter of fiscal year 2019, the Company combined the Wireless and Sensing and the Power and High-Reliability reporting units (see Note 12). Goodwill of $49.4 million related to the Power and High-Reliability reporting unit which was previously a separate reporting unit is now included in the Wireless and Sensing reporting unit’s goodwill balance. The reporting units are the same as the operating segments which are part of a single reportable segment. 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.

During fiscal year 2019, goodwill was recorded for the acquisition of ICI, which is part of the Protection reporting unit, and the acquisition of TrackNet, which is part of the Wireless and Sensing reporting unit.

Purchased Intangibles – The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions, which continue to be amortized:



		October 28, 2018							January 28, 2018
(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	$	(131,250	)	$	33,680	$	164,930	$	(115,628	)	$	49,302
Customer relationships	3-10 years	34,031		(29,725		)	4,306		34,031		(25,426		)	8,605
Total finite-lived intangible assets		$	198,961	$	(160,975	)	$	37,986	$	198,961	$	(141,054	)	$	57,907

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



	Three Months Ended				Nine Months Ended
(in thousands)	October 28, 2018		October 29, 2017		October 28, 2018		October 29, 2017
Core technologies	$	5,047	$	6,020	$	15,622	$	16,669
Customer relationships	1,433		1,433		4,299		3,745
Total amortization expense	$	6,480	$	7,453	$	19,921	$	20,414

The following table sets forth the Company’s indefinite-lived intangible assets resulting from additions to in-process research and development:



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

The Company reviews indefinite-lived intangible assets for impairment during the fourth quarter of 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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