Goodwill and Intangible Assets, Net

12 Months Ended

Apr. 02, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill activity for fiscal 2017 and 2016 is summarized as follows:



	Reportable Segments
(in thousands)	Communications			Computing, Consumer and Industrial		Total
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
Impairment - the Disposal Group (see Note 5)	(161		)	—		(161		)
Additions - Synkera acquisition (see Note 3)	—			1,353		1,353
Balance as of April 2, 2017	$	122,687		$	184,238	$	306,925

Goodwill balance as of April 2, 2017 and April 3, 2016 was net of $920.3 million in accumulated impairment losses.

Intangible asset balances as of April 2, 2017 and April 3, 2016 are summarized as follows:



	April 2, 2017
(in thousands)	Gross Assets		Impairment			Accumulated Amortization			Net Assets
Purchased intangible assets:
Developed technology	$	262,184	$	—		$	(199,851	)	$	62,333
Trademark	5,391		—			(5,347		)	44
Customer relationships	173,097		—			(137,239		)	35,858
Intellectual property licenses	16,196		(1,310		)	(4,303		)	10,583
Total purchased intangible assets	$	456,868	$	(1,310	)	$	(346,740	)	$	108,818



	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

As a result of the acquisition of Synkera, the Company recognized additional intangible assets with total original value of $1.5 million during fiscal 2017 (see Note 3).

During fiscal 2017, the Company purchased an intangible asset with a cost of $4.6 million and an estimated useful life of 7 years. In 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.

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).

Amortization expense for identified intangibles is summarized below:



	Fiscal Year Ended
(in thousands)	April 2, 2017		April 3, 2016		March 29, 2015
Existing technology	$	12,625	$	6,052	$	4,534
Trademarks	775		726		916
Customer relationships	6,486		2,253		1,123
Backlog	1,286		4,504		—
Intellectual property licenses	2,481		1,819		—
Total	$	23,653	$	15,354	$	6,573

The intangible assets are being amortized over estimated useful lives of 1 to 7 years.

During fiscal 2017, the Company recorded an impairment charge of $1.3 million in the carrying value of an intangible asset as a result of change in future estimated cash flows related to the intangible asset. The Company also recorded an impairment charge of $0.2 million and $0.3 million in the carrying value of goodwill and intangible assets, respectively, as a result of reclassifying the Disposal Group as held for sale. Refer to Note 5 for additional information.

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.

Based on the intangible assets recorded as of April 2, 2017, 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
2018	$	19,998
2019	19,884
2020	19,657
2021	19,289
2022 and thereafter	29,990
Total	$	108,818

- 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.

+ References + Details