Goodwill and Purchased Intangible Assets (Notes)

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets [Text Block]

Goodwill and Purchased Intangible Assets

Goodwill

The following table presents the goodwill activity allocated to the Company's reportable segments during the three months ended March 31, 2013 (in millions):



	PSD			SSD		Total
Balance as of December 31, 2012	$	1,866.3		$	2,191.5	$	4,057.8
Reclassifications	(179.0		)	179.0		—
Balance as of March 31, 2013	$	1,687.3		$	2,370.5	$	4,057.8

Goodwill associated with security products previously reported under PSD has been reclassified to SSD in connection with the Company's product realignment of all security products within SSD from PSD. See Note 13, Segments, for further discussion of the Company's product realignment. Goodwill was reclassified based on the relative fair value allocation of the reporting units affected. There were no impairments to goodwill during the three months ended March 31, 2013 and March 31, 2012.

Purchased Intangible Assets

The Company’s purchased intangible assets were as follows (in millions):



	Gross		Accumulated Amortization			Impairments and Other Charges			Net
As of March 31, 2013
Intangible assets with finite lives:
Technologies and patents	$	564.0	$	(431.7	)	$	(30.5	)	$	101.8
Customer contracts, support agreements, and related relationships	74.3		(60.1		)	(2.2		)	12.0
Other	18.8		(18.8		)	—			—
Total intangible assets with finite lives	657.1		(510.6		)	(32.7		)	113.8
IPR&D with indefinite lives	17.4		—			—			17.4
Total purchased intangible assets	$	674.5	$	(510.6	)	$	(32.7	)	$	131.2

As of December 31, 2012
Intangible assets with finite lives:
Technologies and patents	$	554.1	$	(425.0	)	$	(30.5	)	$	98.6
Customer contracts, support agreements, and related relationships	74.3		(59.2		)	(2.2		)	12.9
Other	18.8		(18.8		)	—			—
Total intangible assets with finite lives	647.2		(503.0		)	(32.7		)	111.5
IPR&D with indefinite lives	17.4		—			—			17.4
Total purchased intangible assets	$	664.6	$	(503.0	)	$	(32.7	)	$	128.9

The purchased intangible assets balance as of March 31, 2013, includes intangible assets acquired through the acquisition completed during the first quarter of 2013. Refer to Note 3, Business Combinations, for further details.

Amortization of purchased intangible assets included in operating expenses and cost of product revenues totaled $7.5 million and $7.3 million for the three months ended March 31, 2013 and March 31, 2012, respectively. There were no impairment charges with respect to the purchased intangible assets during the three months ended March 31, 2013 and March 31, 2012.

As of March 31, 2013, the estimated future amortization expense of purchased intangible assets with finite lives is as follows (in millions):



Years Ending December 31,	Amount
Remainder of 2013	$	22.9
2014	30.4
2015	26.8
2016	14.2
2017	10.5
Thereafter	9.0
Total	$	113.8

- 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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