Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2012

Note 9 – Goodwill and Intangible Assets

The following table presents a summary of acquired intangible assets.


			As of September 30, 2012					As of December 25, 2011
	Period of Amortization		Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
			(In millions)
Identifiable intangible assets:
Developed technology		2 - 15 years	$	250.8	$	(225.0	)	$	250.7	$	(214.3	)
Customer base		8 - 10 years		81.6		(70.4	)		81.6		(68.5	)
Core technology		10 years		15.7		(3.6	)		15.7		(2.7	)
In Process R&D		10 years		2.8		(0.1	)		2.8		0.0
Assembled workforce		5 years		1.0		(1.0	)		1.0		(1.0	)
Process technology		5 years		1.6		(1.6	)		1.6		(1.6	)
Patents		4 years		5.9		(5.9	)		5.9		(5.8	)
Subtotal				359.4		(307.6	)		359.3		(293.9	)
Goodwill				169.3		0.0			169.3		0.0

Total			$	528.7	$	(307.6	)	$	528.6	$	(293.9	)

The following table presents the carrying value of goodwill by reporting unit.


	MCCC			PCIA			SDT			Total
	(In millions)
Balance as of December 25, 2011
Goodwill	$	165.0		$	153.1		$	54.5		$	372.6
Accumulated Impairment Losses		0.0			(148.8	)		(54.5	)		(203.3	)

	$	165.0		$	4.3		$	0.0		$	169.3


Goodwill reallocation	($	3.0	)	$	3.0		$	0.0		$	0.0

Balance as of September 30, 2012
Goodwill	$	162.0		$	156.1		$	54.5		$	372.6
Accumulated Impairment Losses		0.0			(148.8	)		(54.5	)		(203.3	)

	$	162.0		$	7.3		$	0.0		$	169.3

During the first quarter of 2012, the company moved two small product groups from the MCCC organization to the PCIA and SDT organizations. Since this changed the company’s reporting units, goodwill was assigned to the reporting units affected using a relative fair value allocation. See footnote 8 for more information.

The following table presents the estimated amortization expense for intangible assets for the remainder of 2012 and for each of the five succeeding fiscal years.


Estimated Amortization Expense:	(In millions)
Remaining Fiscal 2012		4.5
Fiscal 2013		15.6
Fiscal 2014		7.5
Fiscal 2015		5.2
Fiscal 2016		5.5
Fiscal 2017		2.2

- 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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