Goodwill and Intangible Assets

12 Months Ended

Jun. 26, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The balance of Goodwill was $1.4 billion as of June 26, 2016 and June 28, 2015. As of June 26, 2016, $61.1 million of the goodwill balance is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law. The Company recognized a $79.4 million impairment of goodwill on the Company's single-wafer clean reporting unit during the year ended June 28, 2015. No goodwill impairment was recognized in fiscal years 2016 or 2014.

Intangible Assets

The following table provides the Company’s intangible assets, other than goodwill, as of June 26, 2016:



	Gross		Accumulated Amortization			Net
			(in thousands)
Customer relationships	$	615,272	$	(300,711	)	$	314,561
Existing technology	643,433		(401,036		)	242,397
Patents	36,053		(28,701		)	7,352
Other intangible assets	36,114		(35,503		)	611
Total intangible assets	$	1,330,872	$	(765,951	)	$	564,921

The following table provides details of the Company’s intangible assets, other than goodwill, as of June 28, 2015:



	Gross		Accumulated Amortization			Net
			(in thousands)
Customer relationships	$	615,490	$	(234,968	)	$	380,522
Existing technology	643,919		(313,071		)	330,848
Patents	33,553		(26,431		)	7,122
Other intangible assets	35,914		(35,366		)	548
Intangible assets subject to amortization	1,328,876		(609,836		)	719,040
Development rights	9,100					9,100
Intangible assets not subject to amortization	9,100					9,100
Total intangible assets	$	1,337,976	$	(609,836	)	$	728,140

The Company recognized $156.3 million, $157.7 million, and $163.2 million in intangible asset amortization expense during fiscal years 2016, 2015, and 2014, respectively. During the fiscal year 2016, the company transferred ownership of the development rights previously recognize as a component of a real estate sale, see Note 10 for additional information regarding this transaction.

The Company recognized a $9.8 million impairment of existing technology during the fiscal year 2015, resulting from current market demand for the technology. The Company recognized a $4.0 million impairment of in process research and development during fiscal year 2014, due to the cancellation of a project. No impairments were recognized in fiscal year 2016.

The estimated future amortization expense of intangible assets, excluding those with indefinite lives, as of June 26, 2016 was as follows:



Fiscal Year	Amount
	(in thousands)
2017	$	154,592
2018	153,379
2019	115,306
2020	50,107
2021	47,597
Thereafter	43,940
	$	564,921

- 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