Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill. Goodwill balances as of March 31, 2013 and December 30, 2012 are presented below (in thousands):



	Carrying Amount
Balance as of December 30, 2012	$	201,735
Adjustment	601
Balance as of March 31, 2013	$	202,336

Goodwill increased by $0.6 million due to the resolution of a legal contingency matter during the first quarter of fiscal year 2013 related to an acquisition from fiscal year 2012.

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



	March 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed product technology	$	200,960	$	(77,934	)	$	123,026
Customer relationships	13,050		(11,710		)	1,340
Trademarks	5,700		(2,184		)	3,516
Covenants not to compete	3,100		(2,005		)	1,095
Acquisition-related intangible assets	222,810		(93,833		)	128,977
Technology licenses and patents	133,909		(71,823		)	62,086
Total intangible assets subject to amortization	356,719		(165,656		)	191,063
Acquired in-process research and development	37,525		—			37,525
Total intangible assets	$	394,244	$	(165,656	)	$	228,588



	December 30, 2012
	Gross Carrying Amount		Accumulated Amortization			Adjustments			Net Carrying Amount
Developed product technology	$	200,960	$	(68,104	)	$	—		$	132,856
Core technology	79,800		(79,800		)	—			—
Customer relationships	13,050		(10,043		)	—			3,007
Trademarks	5,700		(1,870		)	—			3,830
Covenants not to compete	3,100		(1,618		)	—			1,482
Acquisition-related intangible assets	302,610		(161,435		)	—			141,175
Technology licenses and patents	133,909		(65,690		)	—			68,219
Total intangible assets subject to amortization	436,519		(227,125		)	—			209,394
Acquired in-process research and development	38,385		—			(860		)	37,525
Total intangible assets	$	474,904	$	(227,125	)	$	(860	)	$	246,919

The Company performs tests for impairment of long-lived assets whenever events or circumstances suggest that long-lived assets may not be recoverable. In the first quarter of fiscal year 2013, due to an increase in overall cost estimates and development timelines related to an in-process project for a prior acquisition, the Company performed impairment tests on the amortizable intangible assets and indefinite-lived intangible assets for this acquisition. The Company tested the recoverability of the amortizable intangible assets and performed a qualitative impairment assessment on the indefinite-lived intangible assets. As a result, the Company determined there was no impairment for either. The Company will continue to monitor any events or circumstances that could indicate its intangible assets are impaired.

The annual expected amortization expense of intangible assets as of March 31, 2013, 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:
2013 (remaining nine months)	$	32,729	$	17,467
2014	40,545		21,231
2015	40,380		20,056
2016	15,323		3,332
Total intangible assets subject to amortization	$	128,977	$	62,086

- 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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