Goodwill and Acquisition-Related Intangible Assets

3 Months Ended

Sep. 23, 2012

Goodwill and Acquisition-Related Intangible Assets [Abstract]

Goodwill and Acquisition-Related Intangible Assets

6. Goodwill and Acquisition‑Related Intangible Assets

At September 23, 2012 and June 24, 2012, acquisition‑related intangible assets included the following (in thousands):

			September 23, 2012
	Amortization Periods (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Completed technology		4-12	$	52,045	$	(35,708	)	$	16,337
Customer lists		5-12		10,430		(6,676	)		3,754
Intellectual property and other		2-15		16,763		(9,958	)		6,805
Total acquisition‑related intangible assets			$	79,238	$	(52,342	)	$	26,896

			June 24, 2012
	Amortization Periods (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Completed technology		4-12	$	52,045	$	(34,556	)	$	17,489
Customer lists		5-12		10,430		(6,463	)		3,967
Intellectual property and other		2-15		16,763		(9,643	)		7,120
Total acquisition‑related intangible assets			$	79,238	$	(50,662	)	$	28,576

INTERNATIONAL RECTIFIER CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6. Goodwill and Acquisition‑Related Intangible Assets (Continued)

As of September 23, 2012, the following table represents the total estimated amortization of intangible assets for the remainder of fiscal year 2013 and the five succeeding fiscal years (in thousands):

Fiscal Year	Estimated Amortization Expense
2013	$	4,974
2014		6,420
2015		6,220
2016		4,681
2017		1,463
2018 and thereafter		3,138
Total	$	26,896

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.

The carrying amount of goodwill by reportable segment as of September 23, 2012 and June 24, 2012 was as follows (in thousands):

Business Segments:	September 23, 2012		June 24, 2012
Energy Saving Products	$	33,190	$	33,190
HiRel		18,959		18,959
Total goodwill	$	52,149	$	52,149

- 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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