Goodwill and Intangible Assets

9 Months Ended

Nov. 30, 2011

Goodwill and Intangible Assets [Abstract]

8. Goodwill and Intangible Assets

Changes in the carrying amount of goodwill by reporting unit consists of the following (in thousands):

	Analog/Mixed Signal			Wireless			AIS			Total

Gross balance, 2/28/11	$	33,394		$	24,530		$	71,649		$	129,573
Accumulated impairment losses		-			-			(52,300	)		(52,300	)
Balance, beginning of period		33,394			24,530			19,349			77,273

Adjustments		193			(799	)		-			(606	)
Goodwill acquired		-			40,173			-			40,173
Foreign exchange rate impact		(206	)		(811	)		(140	)		(1,157	)

Gross balance, end of period		33,381			63,093			71,509			167,983
Accumulated impairment losses		-			-			(52,300	)		(52,300	)
Balance, 11/30/11	$	33,381		$	63,093		$	19,209		$	115,683

On May 19, 2011 SMSC completed the acquisition of BridgeCo, a leader in wireless networked audio technologies. Goodwill related to this acquisition is included within the wireless reporting unit.

The Company's intangible assets consisted of the following (in thousands):

	As of November 30, 2011				As of February 28, 2011
	Cost		Accumulated Amortization		Cost		Accumulated Amortization

Purchased technologies	$	54,816	$	37,006	$	48,151	$	32,353
Customer relationships and contracts		19,714		12,086		18,291		10,268
Other		2,103		906		2,096		642
Total – finite-lived intangible assets		76,633		49,998		68,538		43,263
Trademarks and trade names		6,304		-		6,470		-
	$	82,937	$	49,998	$	75,008	$	43,263

Purchased technologies have been assigned estimated useful lives of between one and nine years, with a weighted-average useful life of approximately seven years. Customer relationships and contracts have been assigned useful lives of between one and fifteen years, with a weighted-average useful life of approximately seven years. Certain trade names related to the acquired businesses are amortized over a period of one year and included in other in the table above.

Total amortization expense recorded for finite-lived intangible assets was as follows(in thousands):

	Three Months Ended November 30,				Nine Months Ended November 30,
	2011		2010		2011		2010
Amortization expense	$	2,624	$	2,241	$	7,715	$	6,083

Estimated future finite-lived intangible asset amortization expense is as follows (in thousands):

Period	Amount
Remainder of Fiscal 2012	$	2,573
Fiscal 2013		9,462
Fiscal 2014		4,326
Fiscal 2015		3,815
Fiscal 2016		3,096
Fiscal 2017 and thereafter		3,363
	$	26,635

- 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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