Goodwill and Intangible Assets

3 Months Ended

Apr. 01, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill. Goodwill balances as of April 1, 2012 and January 1, 2012 are presented below (in thousands):



	Carrying Amount
Balance as of January 1, 2012	$	154,899
Acquisition of FlashSoft Corporation	42,770
Balance as of April 1, 2012	$	197,669

Goodwill increased by approximately $42.8 million due to the Company’s acquisition of 100% of the outstanding shares of FlashSoft Corporation (“FlashSoft”), a provider of software caching solutions, on February 13, 2012. The acquisition of FlashSoft adds software caching solutions to the Company’s growing portfolio of enterprise market solutions. The goodwill resulted from expected synergies from the transaction, including the Company’s resources and complementary products and is not deductible for tax purposes. The preliminary estimates of fair value for the liabilities assumed from the acquisition is subject to change as the Company obtains additional information related to certain legal contingency matters during the respective measurement period (up to one year from the acquisition date).

Intangible Assets. Intangible asset balances are presented below (in thousands):



	April 1, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core technology	$	79,800	$	(79,800	)	$	—
Developed product technology	189,300		(39,294		)	150,006
Trademarks	5,700		(924		)	4,776
Customer relationships	12,200		(5,168		)	7,032
Covenants not to compete	3,100		(455		)	2,645
Acquisition-related intangible assets	290,100		(125,641		)	164,459
Technology licenses and patents	133,340		(46,905		)	86,435
Total intangible assets subject to amortization	423,440		(172,546		)	250,894
Acquired in-process research and development	36,900		—			36,900
Total intangible assets	$	460,340	$	(172,546	)	$	287,794



	January 1, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core technology	$	79,800	$	(75,349	)	$	4,451
Developed product technology	172,800		(30,014		)	142,786
Trademarks	5,300		(633		)	4,667
Customer relationships	12,200		(3,643		)	8,557
Covenants not to compete	700		(209		)	491
Acquisition-related intangible assets	270,800		(109,848		)	160,952
Technology licenses and patents	131,340		(40,801		)	90,539
Total intangible assets subject to amortization	402,140		(150,649		)	251,491
Acquired in-process research and development	36,200		—			36,200
Total intangible assets	$	438,340	$	(150,649	)	$	287,691

Acquisition-related intangible assets increased in the three months ended April 1, 2012 due to the acquisition of FlashSoft.

The annual expected amortization expense of intangible assets as of April 1, 2012, excluding acquired in-process research and development, is presented below (in thousands):



	Estimated Amortization Expense
	Acquisition-related Intangible Assets		Technology Licenses and Patents
Fiscal year:
2012 (remaining nine months)	$	33,986	$	18,478
2013	41,463		23,337
2014	37,630		21,231
2015	37,465		20,056
2016	13,915		3,333
Total intangible assets subject to amortization	$	164,459	$	86,435

- 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.

+ References+ Details