XML 28 R16.htm IDEA: XBRL DOCUMENT v3.19.2
Goodwill and Intangible Assets
6 Months Ended
Jun. 29, 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 $26.3 million as of June 29, 2019 and $26.4 million as of December 29, 2018. During the three-month period ended June 29, 2019 an immaterial purchase price adjustment was recorded resulting in an immaterial decrease to Goodwill for the 4D acquisition in 2018.

 

Intangible assets are recorded at cost, less accumulated amortization. Certain of the Company’s intangible assets are denominated in foreign currencies. The aggregate $68,000 increase in the adjusted cost basis of the Company’s intangible assets as of June 29, 2019, as compared with December 29, 2018, was due to foreign currency movements. Such foreign currency movements also increased the June 29, 2019 balance of accumulated amortization of intangible assets by $68,000 as compared with December 29, 2018. During the three months ended June 29, 2019 the Company reclassified $0.5 million of in-process research and development to developed technology as the underlying technology was complete and incorporated into certain products sold. Intangible assets as of June 29, 2019 and December 29, 2018 consisted of the following (in thousands):

 

 

 

June 29, 2019

 

 

 

Adjusted cost

 

 

Accumulated

amortization

 

 

Net carrying

amount

 

Developed technology

 

$

36,512

 

 

$

(17,527

)

 

$

18,985

 

Customer relationships

 

 

6,541

 

 

 

(2,057

)

 

 

4,484

 

Trade name

 

 

1,500

 

 

 

(58

)

 

 

1,442

 

In-process research and development

 

 

900

 

 

 

 

 

 

900

 

Total

 

$

45,453

 

 

$

(19,642

)

 

$

25,811

 

 

 

 

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

 

Trade name

 

 

1,500

 

 

 

(8

)

 

 

1,492

 

In-process research and development

 

 

1,400

 

 

 

 

 

 

1,400

 

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 intangible amortization expense for the three and six months ended June 29, 2019 was $0.8 million and $1.5 million, respectively, and for the three and six months ended June 30, 2018 was $35,000 and $70,000, respectively.

 

There were no impairment charges related to intangible assets recorded during the six months ended June 29, 2019 and June 30, 2018.

The estimated future amortization expense of finite intangible assets as of June 29, 2019 is as follows (in thousands):

 

Fiscal Years

 

Amounts

 

2019 (remainder)

 

$

1,376

 

2020

 

 

2,960

 

2021

 

 

2,960

 

2022

 

 

2,960

 

2023

 

 

2,960

 

Thereafter

 

 

11,695

 

Total future amortization expense

 

$

24,911

 

 

In-process research and development of $0.9 million has been omitted from the above table as its estimated useful life is indeterminant at June 29, 2019. It will be tested for potential impairment, along with Goodwill, until its estimated useful life becomes finite.