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Goodwill and Intangible Assets (Notes)
3 Months Ended
Mar. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
3. Goodwill and Intangible Assets
Goodwill
Goodwill was recorded as a result of the Company's acquisitions of Occam Networks, Inc. (“Occam”) in February 2011 and Optical Solutions, Inc. ("OSI") in February 2006. This goodwill is not deductible for tax purposes, and there have been no adjustments to goodwill since the acquisition dates.
Goodwill is not amortized but instead is subject to an annual impairment test or more frequently if events or changes in circumstances indicate that it may be impaired. We evaluate goodwill on an annual basis at the end of the second quarter of each year. Management has determined that we operate as a single reporting unit and, therefore, evaluates goodwill impairment at the enterprise level.
At the end of the first quarter of 2013, the Company reviewed events and changes to its business subsequent to the end of fiscal 2012 and concluded that there were no indicators of impairment to the carrying value of its goodwill during the three months ended March 30, 2013. As of March 30, 2013, there was no impairment to the carrying value of the Company's goodwill.
Intangible Assets
Intangible assets are carried at cost, less accumulated amortization. The details of intangible assets as of March 30, 2013 and December 31, 2012 are disclosed in the following table (in thousands):
 
March 30, 2013
 
December 31, 2012
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Core developed technology
$
68,964

 
$
(41,074
)
 
$
27,890

 
$
68,964

 
$
(38,986
)
 
$
29,978

Customer relationships
54,740

 
(24,969
)
 
29,771

 
54,740

 
(22,417
)
 
32,323

Total intangible assets, excluding goodwill
$
123,704

 
$
(66,043
)
 
$
57,661

 
$
123,704

 
$
(61,403
)
 
$
62,301


Amortization expense was $4.6 million and $3.8 million for the three months ended March 30, 2013 and March 31, 2012, respectively.
Expected future amortization expense for the fiscal years indicated is as follows (in thousands):
Period
 
Expected
Amortization
Expense
Remainder of 2013
 
$
13,921

2014
 
18,561

2015
 
18,561

2016
 
5,805

2017
 
813

Total
 
$
57,661