GOODWILL AND PURCHASED INTANGIBLE ASSETS

12 Months Ended

Mar. 28, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND PURCHASED INTANGIBLE ASSETS

Goodwill

During the fourth quarter of Fiscal Year 2020, the Company experienced a sustained decrease in its stock price and determined that it was more likely than not that the carrying value of the Company's reporting units exceeded their fair value. During the fourth quarter of Fiscal Year 2020, the Company made key changes to its executive management, which ultimately resulted in a change to the composition of its reportable segments and consequently a change from one to four reporting units – Headsets, Voice, Video, and Services (see Note 20). As a result of the quantitative impairment test performed on a one reporting unit basis, the Company recorded a goodwill impairment loss of $323.1 million due to changes in the estimate of its long-term future financial performance to reflect lower expectations for growth in revenue and earnings than previously estimated. Additionally, after the reallocation of goodwill to its four reporting units, the Company recorded an additional goodwill impairment loss of $47.8 million and $112.8 million to its Voice and Video reporting units, respectively. The fair value of the Company's reporting units was estimated using a discounted cash flow model (income approach) which used Level 3 inputs. The income approach included assumptions for, among others, forecasted revenue, operating income, and discount rates, all of which require significant judgment by management. These assumptions also consider the current industry environment and outlook, and the resulting impact on the Company's expectations for the performance of its business.

The changes in the carrying amount of goodwill allocated to the Company's reporting segments for the year ended March 28, 2020 are as follows:



(in thousands)	Poly Reportable Segment			Products Reportable Segment			Services Reportable Segment		Total Consolidated
Balance as of March 30, 2019	$	1,278,380		$	—		$	—	$	1,278,380
Adjustments⁽¹⁾	1,517								1,517
Impairment prior to re-segmentation	(323,088		)	—			—		(323,088		)
Allocation due to re-segmentation	(956,809		)	789,561			167,248		—
Impairment after re-segmentation	—			(160,593		)			(160,593		)
Balance as of March 28, 2020	$	—		$	628,968		$	167,248	$	796,216

⁽¹⁾Represents measurement period adjustments recorded to reflect the facts and circumstances in existence as of the Acquisition date (see Note 4).

Other Intangible Assets

Other intangible assets consist primarily of existing technology, customer relationships, and trade name acquired in business combinations. During Fiscal Year 2020, all of the remaining in-process research and development was completed and reclassified to existing technology. Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The fair value of the Company's Voice products asset group was estimated using a discounted cash flow model (income approach) which used Level 3 inputs. The income approach included assumptions for, among others, forecasted revenue, operating income, and discount rates, all of which require significant judgment by management. The Company compared the fair value of the Voice products asset group to its carrying value and determined the existing technology and customer relationships intangible assets and certain machinery and equipment to be completely impaired. As a result, the Company recorded an impairment of long-lived assets totaling $179.6 million in the fourth quarter of Fiscal Year 2020 within its Product segment, of which $174.2 million and $5.4 million was classified as cost of revenues and operating expenses, respectively, on its consolidated statements of operations. Impairment of long-lived assets was comprised of $175.0 million of intangible assets and $4.6 million of machinery and equipment.

As of March 28, 2020 and March 30, 2019, the carrying value of other intangible assets, excluding fully amortized assets, is as follows:



As of	March 28, 2020							March 30, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Useful Life
Amortizing Assets
Existing technology	$	427,123	$	(208,848	)	$	218,275	$	566,881	$	(86,301	)	$	480,580	3.3 years
Customer relationships	240,024		(84,506		)	155,518		245,481		(36,245		)	209,236		4.0 years
Trade name/Trademarks	115,600		(22,478		)	93,122		115,600		(9,633		)	105,967		7.3 years
Non-amortizing assets
In-process R&D	—		—			—		29,892		—			29,892		N/A
Total intangible assets	$	782,747	$	(315,832	)	$	466,915	$	957,854	$	(132,179	)	$	825,675	4.3 years

Intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets. Amortization is charged to cost of sales and operating expenses in the Consolidated Statement of Operations. The Company recognized $183.7 million and $160.2 million of amortization expense in Fiscal Year 2020 and Fiscal Year 2019, respectively.

As of March 28, 2020, expected amortization expense for other intangible assets for each of the next five years and thereafter is as follows:



in thousands	Amount
2021	$	124,893
2022	113,858
2023	111,232
2024	65,936
2025	21,688
Thereafter	29,308
	$	466,915