Goodwill and Intangible Assets, Net

12 Months Ended

Apr. 01, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill activity for fiscal 2018 and 2017 is summarized as follows:



	Reportable Segments
(in thousands)	Communications			Computing, Consumer and Industrial		Total
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
Additions - GigPeak acquisition (see Note 3)	18,613			94,579		113,192
Balance as of April 1, 2018	$	141,300		$	278,817	$	420,117

Goodwill balance as of April 1, 2018 and April 2, 2017 was net of $920.3 million in accumulated impairment losses.

Intangible asset balances as of April 1, 2018 and April 2, 2017 are summarized as follows:



	April 1, 2018
(in thousands)	Gross Assets		Impairment			Accumulated Amortization			Net Assets
Purchased intangible assets:
Developed technology	$	336,402	$	—		$	(223,882	)	$	112,520
Trademark	5,391		—			(5,391		)	—
Customer relationships	201,997		—			(149,416		)	52,581
Intellectual property licenses	7,500		—			(3,901		)	3,599
Software licenses	6,023		—			(943		)	5,080
Total amortizable purchased intangible assets	557,313		—			(383,533		)	173,780
In-process research and development (IPR&D)	9,017		(2,016		)	—			7,001
Total purchased intangible assets	$	566,330	$	(2,016	)	$	(383,533	)	$	180,781



	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

During fiscal 2018, certain research and development efforts were completed and, as a result, $1.2 million of purchased IPR&D projects from the GigPeak acquisition reached technological feasibility and was reclassified as core and developed technology and the Company began amortizing the intangible asset over its estimated useful life. During fiscal 2018, the Company recognized a total of $2.0 million of impairment charges related to certain IPR&D projects, which was recorded in Research and Development Expense in the Consolidated Statements of Operations. As of April 1, 2018, the Company had $7.0 million of IPR&D assets remaining on the Consolidated Balance Sheet.

During fiscal 2018, the Company purchased $5.8 million software licenses that met the criteria for capitalization as intangible assets. The Company also recognized developed technology with fair value of $17.0 million as a result of an asset acquisition on August 10, 2017. Refer to Note 3 for details.

As a result of the acquisition of GigPeak, the Company recognized additional intangible assets with total original value of $97.9 million during fiscal 2018 (see Note 3).

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.

Amortization expense for identified intangibles is summarized below:



	Fiscal Year Ended
(in thousands)	April 1, 2018		April 2, 2017		April 3, 2016
Existing technology	$	24,031	$	12,625	$	6,052
Trademarks	44		775		726
Customer relationships	12,177		6,486		2,253
Backlog	200		1,286		4,504
Software licenses	3,290		—		—
Intellectual property licenses	6,984		2,481		1,819
Total	$	46,726	$	23,653	$	15,354

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

During fiscal 2018, the Company recorded an accelerated amortization charge of $6.2 million (included in the table above) related to certain software licenses and intellectual property licenses as the estimated future cash flows resulting from the use of the assets were less than the carrying amount.

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.

Based on the intangible assets recorded as of April 1, 2018, 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
2019	$	40,923
2020	41,447
2021	40,498
2022	38,316
2023 and thereafter	19,597
Total	$	180,781

- 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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