Goodwill and Acquisition-Related Intangible Assets

6 Months Ended

Dec. 25, 2011

Goodwill and Acquisition-Related Intangible Assets [Abstract]

Goodwill and Acquisition-Related Intangible Assets

6. Goodwill and Acquisition-Related Intangible Assets

At December 25, 2011 and June 26, 2011, acquisition-related intangible assets included the following (in thousands):

	Amortization		December 25, 2011
	Periods (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Completed technology		4 - 12	$	52,045	$	(31,865	)	$	20,180
Customer lists		5 - 12		10,430		(6,003	)		4,427
Intellectual property and other		2 - 15		16,763		(8,979	)		7,784
Total acquisition-related intangible assets			$	79,238	$	(46,847	)	$	32,391

	Amortization		June 26, 2011
	Periods (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Completed technology		4 - 12	$	52,045	$	(28,560	)	$	23,485
Customer lists		5 - 12		10,430		(5,455	)		4,975
Intellectual property and other		2 - 15		16,763		(8,278	)		8,485
Total acquisition-related intangible assets			$	79,238	$	(42,293	)	$	36,945

As of December 25, 2011, the following table represents the total estimated amortization of intangible assets for the remainder of fiscal year 2012 and the four succeeding fiscal years (in thousands):

Fiscal Year	Estimated Amortization Expense
2012	$	3,759
2013		6,709
2014		6,420
2015		6,220
2016		4,681
2017 and thereafter		4,602
Total	$	32,391

Goodwill

The Company evaluates the carrying value of goodwill and other intangible assets annually during the fourth quarter of each fiscal year and more frequently if it believes indicators of impairment exist. In evaluating goodwill, a two-step goodwill impairment test is applied to each reporting unit. The Company identifies reporting units and determines the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. In the first step of the impairment test, the Company estimates the fair value of the reporting unit. If the fair value of the reporting unit is less than the carrying value of the reporting unit, the Company performs the second step which compares the implied fair value of the reporting unit with the carrying amount of the reporting unit and writes down the carrying amount of the goodwill to the implied fair value. During the second quarter of fiscal year 2012, the Company believed that the significant downturn in market demand and resulting drop in the price of its stock were potential indicators of impairment of goodwill. The Company decided that these indicators were sufficient to perform an interim step one impairment analysis. Based on the results of this analysis, the Company concluded that for each reporting unit, the carrying amount did not exceed its fair value. Therefore, goodwill for each reporting unit was not considered to be impaired as of December 25, 2011, and the second step of the goodwill impairment test was not considered necessary.

The carrying amount of goodwill by segment as of December 25, 2011 and June 26, 2011 was as follows (in thousands):

Business Segments:	December 25, 2011		June 26, 2011
Power Management Devices	$	—	$	—
Energy Saving Products		33,190		33,190
HiRel		18,959		18,959
Enterprise Power		69,421		69,421
Automotive Products		—		—
Intellectual Property		—		—
Total goodwill	$	121,570	$	121,570

- 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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