Goodwill and Intangible Assets

9 Months Ended

Oct. 02, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill. Goodwill balances as of October 2, 2011 and January 2, 2011 are presented below:



	Carrying Amount
	(In thousands)
Balance as of January 2, 2011	$	—
Acquisition of Pliant Technology, Inc.	154,899
Balance as of October 2, 2011	$	154,899

Goodwill increased by approximately $154.9 million due to the Company’s acquisition of Pliant Technology, Inc. (“Pliant”) during the second quarter of fiscal year 2011. See Note 14, “Business Acquisition.”

Goodwill is not amortized, but is reviewed and tested for impairment at least annually, on the first day of the Company’s fourth quarter and whenever events or circumstances occur which indicate that goodwill might be impaired. Impairment of goodwill is tested at the Company’s reporting unit level by comparing the carrying amount, including goodwill, to the fair value.

Intangible Assets. Intangible asset balances as of October 2, 2011 and January 2, 2011 are presented below:



	October 2, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Core technology	$	79,800	$	(70,898	)	$	8,902
Developed product technology	172,800		(21,278		)	151,522
Trademarks	5,300		(368		)	4,932
Customer relationships	12,200		(2,118		)	10,082
Covenants not to compete	700		(122		)	578
Acquisition-related intangible assets	270,800		(94,784		)	176,016
Technology licenses and patents	131,340		(34,647		)	96,693
Total intangible assets subject to amortization	402,140		(129,431		)	272,709
Acquired in-process research and development	36,200		—			36,200
Total intangible assets	$	438,340	$	(129,431	)	$	308,909



	January 2, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Core technology	$	79,800	$	(57,546	)	$	22,254
Developed product technology	11,400		(8,075		)	3,325
Acquisition-related intangible assets	91,200		(65,621		)	25,579
Technology licenses and patents	31,340		(19,515		)	11,825
Total intangible assets	$	122,540	$	(85,136	)	$	37,404

Acquisition-related intangible assets increased in the nine months ended October 2, 2011 due to the acquisition of Pliant. Acquired in-process research and development relates to the acquisition of Pliant and is accounted for as an indefinite-lived intangible asset. Upon completion of development, the acquired in-process research and development will be considered an amortizable finite-lived intangible asset. Technology licenses and patents increased in the nine months ended October 2, 2011 due to a technology license purchased from a third party.

The annual expected amortization expense of intangible assets as of October 2, 2011, excluding acquired in-process research and development, is presented below:



	Estimated Amortization Expense
	Acquisition-Related Intangible Assets		Technology Licenses and Patents
	(In thousands)
Fiscal Year:
2011 (remaining three months)	$	15,063	$	6,155
2012	44,906		23,971
2013	35,938		22,670
2014	33,340		20,564
2015	33,340		20,000
2016	13,429		3,333
Total intangible assets subject to amortization	$	176,016	$	96,693

- 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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