Goodwill and Intangible Assets

3 Months Ended

Mar. 27, 2016

Note 6 – Goodwill and Intangible Assets

Our total goodwill balances were $205.3 million and $204.5 million at March 27, 2016 and December 27, 2015, respectively. The difference between the two periods relates to foreign exchange impacts of $0.8 million. Please refer to Note 7. Goodwill and Intangible Assets to our Annual Report in form 10-K for the year ended December 27, 2015 for more information regarding our accumulated impairment losses and goodwill balances.

The following table presents the carrying amount of goodwill by reportable segment:


	SPS			APSS			SPG			Total
	(In millions)
Balance at March 27, 2016
Goodwill	$	219.6		$	111.9		$	77.7		$	409.2
Accumulated impairment losses		(114.5	)		(12.8	)		(76.6	)		(203.9	)

	$	105.1		$	99.1		$	1.1		$	205.3

Foreign exchange impact	$	—		$	0.8		$	—		$	0.8

Balance at December 27, 2015
Goodwill	$	219.6		$	111.1		$	77.7		$	408.4
Accumulated impairment losses		(114.5	)		(12.8	)		(76.6	)		(203.9	)

	$	105.1		$	98.3		$	1.1		$	204.5

The following table presents a summary of acquired intangible assets:


			As of March 27, 2016					As of December 27, 2015
	Period of Amortization		Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
			(In millions)
Developed technology		8-10 years	$	260.4	$	(248.9	)	$	260.1	$	(248.1	)
Customer base		6-10 years		85.8		(81.8	)		85.7		(80.9	)
Core technology		10-15 years		15.7		(7.7	)		15.7		(7.4	)
In-process R&D		3-10 years		3.3		(1.3	)		3.3		(1.2	)
Trademarks and trade names		5 years		0.5		(0.2	)		0.5		(0.2	)

Total identifiable intangible assets			$	365.7	$	(339.9	)	$	365.3	$	(337.8	)

Amortization expense for intangible assets was $1.9 million and $2.1 million for the three months ended March 27, 2016 and March 29, 2015, respectively.

The estimated amortization expense for intangible assets for each of the five succeeding fiscal years is as follows:


Estimated Amortization Expense:	(In millions)
Remaining Fiscal 2016	$	6.1
Fiscal 2017		5.5
Fiscal 2018		4.1
Fiscal 2019		3.6
Fiscal 2020		3.1

- 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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