Identified Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2012

Identified Intangible Assets and Goodwill

Note 9 — Identified Intangible Assets and Goodwill

Identified Intangible Assets

Identified intangible assets were comprised of the following:


	December 31,
	2012					2011
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
	(In thousands)
Current technology	$	930,767	$	(751,236	)	$	857,367	$	(702,500	)
Customer base		444,439		(304,725	)		402,739		(269,409	)
Patent licensing		312,800		(198,346	)		312,800		(167,728	)
Order backlog		4,500		(4,500	)		—		—
Trade names		1,800		(680	)		300		(300	)
Workforce		3,567		(3,567	)		3,567		(3,046	)
In-process research and development		51,300		—			—		—

Total identified intangible assets	$	1,749,173	$	(1,263,054	)	$	1,576,773	$	(1,142,983	)

The following table summarizes amortization expense and the weighted-average lives of identified intangible assets:


	Weighted- Average Lives		Year Ended December 31,
	Weighted- Average Lives		2012		2011		2010
	(In months)		(In thousands)
Current technology		52	$	48,736	$	49,243	$	77,808
Customer base		47		35,316		33,921		36,440
Patent licensing		36		30,618		32,125		36,220
Order backlog		3		4,500		—		—
Trade names		55		380		50		148
Workforce		72		521		596		596

Total		48	$	120,071	$	115,935	$	151,212

The estimated annual future amortization expenses related to identified intangible assets as of December 31, 2012 are as follows:


	Amortization Expense
	(In thousands)
Years ending December 31:
2013	$	122,353
2014		131,307
2015		107,125
2016		92,934
2017 and thereafter		32,400

Total	$	486,119

Goodwill

The following table summarizes goodwill activity:


	Goodwill
	(In thousands)
Balance as of December 31, 2011	$	72,377
Addition due to SandForce acquisition		182,628

Balance as of December 31, 2012	$	255,005

After completing annual impairment reviews during the fourth quarters of 2012, 2011 and 2010, the Company concluded that goodwill was not impaired in any of these years. As of December 31, 2012 and 2011, accumulated impairment losses were $2.4 billion.

- 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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