Goodwill and Intangible Assets

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 ⁽¹⁾	—		4,316		4,928		9,244
Balance at January 27, 2019	$	274,085	$	72,128	$	4,928	$	351,141

⁽¹⁾ See Note 3 for Goodwill associated with acquisitions in the current fiscal year.

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.

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 14). Goodwill of $49.4 million that was 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 considers when assessing whether to perform the first step of the goodwill impairment test.

Goodwill is tested for impairment at the reporting unit level during the fourth quarter of each fiscal year.

For fiscal years 2019 and 2018, 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 27, 2019, and January 28, 2018, there were no indications of impairment of the Company's goodwill balances.

Purchased 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 27, 2019							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	$	167,930	$	(136,544	)	$	31,386	$	164,930	$	(115,628	)	$	49,302
Customer relationships	3-10 years	34,031		(31,159		)	2,872		34,031		(25,426		)	8,605
Total finite-lived intangible assets		$	201,961	$	(167,703	)	$	34,258	$	198,961	$	(141,054	)	$	57,907

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



(in thousands)	January 27, 2019		January 28, 2018		January 29, 2017
Core technologies	$	20,916	$	22,688	$	20,901
Customer relationships	5,733		5,179		4,400
Total amortization expense	$	26,649	$	27,867	$	25,301

Future amortization expense is expected to be as follows:



(in thousands)
To be recognized in:	Core Technologies		Customer relationships		Total
Fiscal year 2020	$	14,239	$	2,283	$	16,522
Fiscal year 2021	7,389		589		7,978
Fiscal year 2022	4,655		—		4,655
Fiscal year 2023	3,714		—		3,714
Fiscal year 2024	1,389		—		1,389
Thereafter	—		—		—
Total expected amortization expense	$	31,386	$	2,872	$	34,258

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 29, 2017	$	—
In-process research and development through acquisitions	2,300
Value at January 28, 2018	2,300
Value at January 27, 2019	$	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.