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INTANGIBLE ASSETS
6 Months Ended
Jun. 29, 2013
INTANGIBLE ASSETS  
INTANGIBLE ASSETS

NOTE 6                         INTANGIBLE ASSETS

 

Intangible assets were as follows:

 

(In thousands)

 

June 29,

 

December 29,

 

 

 

2013

 

2012

 

Intangible assets subject to amortization:

 

 

 

 

 

Developed technology, net of accumulated amortization of $12,433 and $10,885 as of June 29, 2013 and December 29, 2012, respectively

 

$

28,087

 

$

29,742

 

Customer relationships, net of accumulated amortization of $29,414 and $26,255 as of June 29, 2013 and December 29, 2012, respectively

 

16,918

 

20,100

 

In-process research and development, net of accumulated amortization of $427 and $158 as of June 29, 2013 and December 29, 2012, respectively

 

7,472

 

7,746

 

Other, net of accumulated amortization of $6,027 and $5,915 as of June 29, 2013 and December 29, 2012, respectively

 

1,389

 

1,553

 

 

 

53,866

 

59,141

 

Intangible assets not subject to amortization:

 

 

 

 

 

Trademarks and trade names

 

18,305

 

18,305

 

Intangible assets, net

 

$

72,171

 

$

77,446

 

 

Developed technology is amortized on a straight line basis over 10 to 20 years, depending on the life of the product technology.  Intangible assets related to customer relationships are generally amortized over a period of up to 10 years on an accelerated basis.  In-process research and development is amortized on a straight line basis over the product’s estimated useful life upon completion of the technology.  Other intangible assets include acquired backlog, product trademarks and trade names, non-competition agreements and defensible assets.  With the exception of product trademarks and trade names, such assets are amortized on a straight line basis over a period of three months to 10 years, depending on the asset.  Trademarks and trade names associated with products are amortized on a straight line basis over the estimated remaining life of the product technology, which ranges from 10 to 20 years.  Trademarks and trade names associated with a business have indefinite lives and are not amortized.

 

Amortization expense related to intangible assets totaled $2.6 million and $5.1 million for the three and six months ended June 29, 2013, respectively, and $5.0 million and $10.2 million for the three and six months ended June 30, 2012, respectively.

 

Estimated aggregate amortization expense for future fiscal years is as follows:

 

(In thousands)

 

 

Estimated
Aggregate
Amortization
Expense

 

2013 (remaining)

 

$

5,180

 

2014

 

8,360

 

2015

 

6,727

 

2016

 

6,350

 

2017

 

5,380

 

Thereafter

 

19,894

 

 

 

$

51,891

 

 

The Company has excluded $2.0 million of amortization expense related to certain in-process research and development from the table above, as it was uncertain as of June 29, 2013 when the technology will be completed and when the amortization will begin.