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Goodwill and Intangible Assets
3 Months Ended
Mar. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

Note 9. Goodwill and Intangible Assets

Goodwill is recorded at cost and tested for potential impairment at least annually. Goodwill was $26.4 million as of March 30, 2019 and December 29, 2018.

 

Intangible assets are recorded at cost, less accumulated amortization. Certain of the Company’s intangible assets are denominated in foreign currencies. The aggregate $50,000 increase in the adjusted cost basis of the Company’s intangible assets as of March 30, 2019, as compared with December 29, 2018, was due to foreign currency movements. Such foreign currency movements also increased the March 30, 2019 balance of accumulated amortization of the intangibles assets by $50,000 as compared with December 29, 2018. Intangible assets as of March 30, 2019 and December 29, 2018 consisted of the following (in thousands):

 

 

 

March 30, 2019

 

 

 

Adjusted cost

 

 

Accumulated

amortization

 

 

Net carrying

amount

 

Developed technology

 

$

35,997

 

 

$

(17,040

)

 

$

18,957

 

Customer relationships

 

 

6,538

 

 

 

(1,790

)

 

 

4,748

 

In-process research and development

 

 

1,400

 

 

 

 

 

 

1,400

 

Trade name

 

 

1,500

 

 

 

(33

)

 

 

1,467

 

Total

 

$

45,435

 

 

$

(18,863

)

 

$

26,572

 

 

 

 

December 29, 2018

 

 

 

Adjusted cost

 

 

Accumulated

amortization

 

 

Net carrying

amount

 

Developed technology

 

$

35,954

 

 

$

(16,532

)

 

$

19,422

 

Customer relationships

 

 

6,531

 

 

 

(1,519

)

 

 

5,012

 

In-process research and development

 

 

1,400

 

 

 

 

 

 

1,400

 

Trade name

 

 

1,500

 

 

 

(8

)

 

 

1,492

 

Total

 

$

45,385

 

 

$

(18,059

)

 

$

27,326

 

 

The amortization of finite-lived intangibles is computed using the straight-line method. Estimated remaining lives of finite-lived intangibles range from less than one year to fifteen years. The total amortization expense for the three months ended March 30, 2019 and March 31, 2018 was $755,000 and $35,000, respectively.

 

There were no impairment charges related to intangible assets recorded during the three months ended March 30, 2019 and March 31, 2018.

The estimated future amortization expense of finite intangible assets as of March 30, 2019 is as follows (in thousands):

 

Fiscal Years

 

Amounts

 

2019 (remaining nine months)

 

$

2,099

 

2020

 

 

2,905

 

2021

 

 

2,905

 

2022

 

 

2,905

 

2023

 

 

2,905

 

Thereafter

 

 

11,453

 

Total future amortization expense

 

$

25,172

 

 

In-process research and development of $1.4 million has been omitted from the above table as its estimated useful life is indeterminant at March 30, 2019. It will be tested for potential impairment, along with Goodwill, until its estimated useful life becomes finite.