Goodwill and Intangible Assets, Net

12 Months Ended

Mar. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill activity for fiscal 2014 and fiscal 2013 was follows:



	Reportable Segment
(in thousands)	Communications			Computing and Consumer			Total
Balance as of April 1, 2012	$	74,673		$	21,419		$	96,092
Dispositions	—			(700		)	(700		)
Additions	49,532			—			49,532
Balance as of March 31, 2013	124,205			20,719			144,924
Impairment losses	(2,161		)	—			(2,161		)
Dispositions	—			(7,323		)	(7,323		)
Additions	204			—			204
Balance as of March 30, 2014	$	122,248		$	13,396		$	135,644

In the third quarter of the fiscal year ended March 30, 2014, the Company recorded a $2.1 million goodwill impairment loss associated with its HSC business which was classified as a discontinued operation. The impairment loss was included in loss from discontinued operations.

In the second quarter of the fiscal year ended March 30, 2014, the Company allocated $7.3 million in goodwill to the sale of certain assets of IDT's PCI Express enterprise flash controller business which was completed on July 12, 2013.

In the second quarter of the fiscal year ended March 31, 2013, the Company allocated $0.7 million in goodwill to the sale of the video processing business which was completed on August 1, 2012.

During the fiscal year ended March 31, 2013, the Company acquired $49.5 million in goodwill associated with the acquisitions of Fox Enterprises, Alvand Technologies and NXP B.V.'s data converter business (see Note 3). Goodwill was allocated based on the relative fair value method.

Goodwill balances as of March 30, 2014 and March 31, 2013 are net of $922.5 million and $920.4 million, respectively, in accumulated impairment losses.

Intangible asset balances as of March 30, 2014 and March 31, 2013 are summarized as follows:



	March 30, 2014
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets (1)
Purchased intangible assets:
Existing technology	$	217,923	$	(203,888	)	$	14,035
Trademarks	4,411		(2,934		)	1,477
Customer relationships	131,093		(128,681		)	2,412
Non-compete agreements	2,275		(1,458		)	817
Total purchased intangible assets	$	355,702	$	(336,961	)	$	18,741

(1) Includes $6.6 million in HSC assets held for sale.



	March 31, 2013
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Existing technology	$	241,197	$	(203,129	)	$	38,068
Trademarks	4,411		(2,018		)	2,393
Customer relationships	131,931		(128,107		)	$	3,824
Backlog	1,600		(1,509		)	91
Non-compete agreements	2,600		(807		)	1,793
Total amortizable purchased intangible assets	381,739		(335,570		)	46,169
IPR&D *	2,433		—			2,433
Total purchased intangible assets	$	384,172	$	(335,570	)	$	48,602

* IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When the IPR&D project is complete, it is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life. If an IPR&D project is abandoned, the Company will record a charge for the carrying value of the related intangible asset to its Consolidated Statements of Operations in the period it is abandoned.

Amortization expense for identified intangibles is summarized below:



	Fiscal Year Ended
(in thousands)	March 30, 2014		March 31, 2013		April 1, 2012
Existing technology	$	19,730	$	14,131	$	12,527
Trademarks	3,405		874		452
Customer relationships	916		3,225		3,510
Backlog	91		1,509		—
Non-compete agreements	651		807		—
Total	$	24,793	$	20,546	$	16,489

The intangible assets are being amortized over estimated useful lives of six months to seven years.

During the fourth quarter of the fiscal year ended in March 30, 2014, the Company initiated actions to discontinue production and sale of products using technology attained through the acquisitions of Mobius Microsystems in fiscal 2010 and IKOR in fiscal 2011. In connection with the decision to discontinue these products, the Company revised the estimated remaining useful life of the related acquired intangible assets, resulting in an additional $8.7 million in accelerated amortization which was charged to cost of revenues in the fourth quarter of fiscal 2014. In addition, the Company recorded a $2.4 million impairment charge to research and development expense associated with the decision to discontinue further development required to complete the Mobius Microsystems acquired in-process research and development.

Based on the intangible assets recorded at March 30, 2014, excluding held for sale intangible assets which are no longer amortized, and assuming no subsequent additions to or impairment of the underlying assets, the remaining estimated amortization expense is expected to be as follows (in thousands):



Fiscal Year	Amount
2015	$	6,572
2016	3,083
2017	2,185
2018	256
2019 and thereafter	10
Total	$	12,106

- 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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