Goodwill and Intangible Assets, Net

12 Months Ended

Apr. 03, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill activity for fiscal 2016 and 2015 is summarized as follows:



	Reportable Segments
(in thousands)	Communications		Computing, Consumer and Industrial		Total
Balance as of March 30, 2014	$	122,248	$	13,396	$	135,644
Balance as of March 29, 2015	$	122,248	$	13,396	$	135,644
Additions - ZMDI acquisition (see Note 3)	600		169,489		170,089
Balance as of April 3, 2016	$	122,848	$	182,885	$	305,733

Goodwill balances as of April 3, 2016 and March 29, 2015 are net of $920.3 million and $922.5 million, respectively, in accumulated impairment losses.

Intangible asset balances as of April 3, 2016 and March 29, 2015 are summarized as follows:



	April 3, 2016
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Developed technology	$	279,514	$	(205,307	)	$	74,207
Trademark	5,211		(4,576		)	635
Customer relationships	172,787		(130,745		)	42,042
Order backlog	5,800		(4,504		)	1,296
Intellectual property licenses	11,400		(1,819		)	9,581
Total purchased intangible assets	$	474,712	$	(346,951	)	$	127,761



	March 29, 2015
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Developed technology	$	211,170	$	(206,491	)	$	4,679
Trademark	4,411		(3,850		)	561
Customer relationships	131,045		(130,750		)	295
Total purchased intangible assets	$	346,626	$	(341,091	)	$	5,535

As a result of the acquisition of ZMDI, the Company recognized additional intangible assets with total original value of $126.2 million during fiscal 2016 (see Note 3).

During fiscal 2016, the Company individually purchased intangible assets with a total cost of $11.4 million and estimated useful life of 3 to 7.5 years. These intangible assets are comprised of intellectual property licenses that are being used by the Company in the development, manufacture and sale of certain products.

Amortization expense for identified intangibles is summarized below:



	Fiscal Year Ended
(in thousands)	April 3, 2016		March 29, 2015		March 30, 2014
Existing technology	$	6,052	$	4,534	$	19,730
Trademarks	726		916		3,405
Customer relationships	2,253		1,123		916
Backlog	4,504		—		91
Intellectual property licenses	1,819		—		—
Non-compete agreements	—		—		651
Total	$	15,354	$	6,573	$	24,793

The intangible assets are being amortized over estimated useful lives of 1 to 7.5 years.

During fiscal 2015, the Company recorded an impairment charge relating to the HSC assets held for sale of $5.6 million, which consisted of existing technology of $4.6 million, customer relationships of $0.9 million and non-compete agreements of $0.1 million. Refer to Note 4 for additional information.

During fiscal 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 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 April 3, 2016, 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
2017	$	23,061
2018	19,325
2019	18,871
2020	18,569
2021 and thereafter	47,935
Total	$	127,761

- 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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