Goodwill and Other Intangible Assets

12 Months Ended

Jan. 02, 2016

Goodwill and Other Intangible Assets

10. Goodwill and Other Intangible Assets

Goodwill

The following summarizes the activity in goodwill for the years ended January 2, 2016 and January 3, 2015 (in thousands):


	Year Ended
	January 2, 2016		January 3, 2015
Beginning balance	$	228,781	$	228,781
Additions due to business combinations		43,941		—

Ending balance	$	272,722	$	228,781

Other Intangible Assets

The gross carrying amount and accumulated amortization of other intangible assets are as follows (in thousands):


		January 2, 2016					January 3, 2015
	Weighted-Average Amortization Period (Years)	January 2, 2016					January 3, 2015
	Weighted-Average Amortization Period (Years)	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Intangible assets:
Subject to amortization:
Core and developed technology	9	$	170,541	$	(70,135	)	$	148,891	$	(47,894	)
Customer relationships	7		23,170		(7,259	)		14,500		(4,003	)
Patents	6		3,022		(1,763	)		3,000		(1,250	)
Trademarks	7		3,490		(952	)		2,210		(433	)

	9		200,223		(80,109	)		168,601		(53,580	)
Not subject to amortization:
In-process research and development	Not amortized		1,240		—			—		—

Total intangible assets		$	201,463	$	(80,109	)	$	168,601	$	(53,580	)

Gross intangible assets increased $32.9 million in fiscal 2015 due to the acquisition of Bluegiga and Telegesis.

Amortization expense related to intangible assets for fiscal 2015, 2014 and 2013 was $26.5 million, $17.9 million and $14.6 million, respectively. The estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years is as follows (in thousands):


Fiscal Year
2016	$	26,677
2017		23,012
2018		20,995
2019		15,530
2020		13,298

- 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