XML 86 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Intangible Assets
 12 Months Ended
Dec. 28, 2013
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets
Intangible Assets
In November 2011, the Company acquired 100% of the outstanding shares of Nanda.  In accounting for the transaction, the Company recorded $10.6 million of specifically identified intangible assets. See Note 3, "Acquisition, Goodwill Impairment and Long-lived Asset Impairment," for further details.
On December 9, 2010, the Company purchased three patents from RTM for $0.4 million cash. The Company also incurred approximately $0.1 million of legal expenses, which were capitalized and included with the cost of the patents acquired. The primary patent expires on March 31, 2018. The Company is amortizing the patents on a straight line basis over a period of 7 years and 3 months (from January 2011 through March 2018).
Finite-lived intangible assets are recorded at cost, less accumulated amortization. Finite-lived intangible assets as of December 28, 2013 and December 29, 2012 consist of the following (in thousands):
 
 
Adjusted cost as of December 28, 2013
 
Accumulated amortization as of December 28, 2013
 
Net carrying amount as of December 28, 2013
Developed technology
$
18,095

 
$
(11,032
)
 
$
7,063

Customer relationships
9,573

 
(9,263
)
 
310

Brand names
1,927

 
(1,700
)
 
227

Patented technology
2,252

 
(1,988
)
 
264

Trademark
80

 
(80
)
 
—

Total
$
31,927

 
$
(24,063
)
 
$
7,864

 
 
Adjusted cost as of December 29, 2012
 
Accumulated amortization as of December 29, 2012
 
Net carrying amount as of December 29, 2012
Developed technology
$
17,700

 
$
(8,277
)
 
$
9,423

Customer relationships
9,538

 
(8,643
)
 
895

Brand names
1,927

 
(1,599
)
 
328

Patented technology
2,252

 
(1,922
)
 
330

Trademark
80

 
(76
)
 
4

Total
$
31,497

 
$
(20,517
)
 
$
10,980

`
The amortization of finite-lived intangibles is computed using the straight-line method. Estimated lives of finite-lived intangibles range from two to ten years. During fiscal year 2012, the $0.3 million of intangible assets related to in-process research and development as of December 31, 2011 was completed and incorporated in products sold during 2012 and the asset was reclassified to developed technology as of December 29, 2012.
Total amortization expense for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $3.3 million, $3.3 million and 1.7 million, respectively.
In the three month period ended March 31, 2012, the Company recorded a $0.6 million reduction in the fair value of royalty payments to RTM with a corresponding decrease of $0.4 million to goodwill and $0.2 million to intangible assets. There were no other adjustment to intangible assets recorded during the year ended December 28, 2013. See Note 3 for a summary of the acquisition and goodwill impairment analysis.
The estimated future amortization expense as of December 28, 2013 is as follows (in thousands):
 
 
Fiscal Years
Amounts
2014
$
3,097

2015
2,405

2016
1,924

2017
232

2018
140

Thereafter
66

Total amortization
$
7,864