Goodwill and Intangible Assets

6 Months Ended

Dec. 29, 2013

NOTE 7 — GOODWILL AND INTANGIBLE ASSETS

Goodwill

There was no significant change in the goodwill balance during the six months ended December 29, 2013. Of the $1.5 billion goodwill balance as of December 29, 2013, $61 million is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law.

Goodwill is assessed at least annually for impairment. The Company did not record impairments of goodwill during the three or six months ended December 29, 2013 or December 23, 2012.

Intangible Assets

The following table provides details of the Company’s intangible assets, including the impact of foreign currency translation adjustments, as of December 29, 2013 (in thousands, except years):


	Gross		Accumulated Amortization			Net		Weighted-Average Useful Life (years)
Customer relationships	$	624,902	$	(139,270	)	$	485,632		9.01
Existing technology		657,273		(185,093	)		472,180		6.96
Patents		32,053		(23,219	)		8,834		6.09
Other intangible assets		35,216		(35,216	)		—		4.10

Intangible assets subject to amortization		1,349,444		(382,798	)		966,646
In process research and development		20,000					20,000
Development rights		9,100					9,100

Intangible assets not subject to amortization		29,100					29,100

Total intangible assets	$	1,378,544	$	(382,798	)	$	995,746

The following table provides details of the Company’s intangible assets, including the impact of foreign currency translation adjustments, as of June 30, 2013 (in thousands, except years):


	Gross		Accumulated Amortization			Net		Weighted-Average Useful Life (years)
Customer relationships	$	624,686	$	(103,519	)	$	521,167		9.01
Existing technology		653,628		(139,894	)		513,734		6.97
Patents		32,053		(22,036	)		10,017		6.09
Backlog		10,000		(10,000	)		—		1.00
Other intangible assets		35,216		(34,889	)		327		4.10

Intangible assets subject to amortization		1,355,583		(310,338	)		1,045,245
In process research and development		20,000					20,000
Development rights		9,100					9,100

Intangible assets not subject to amortization		29,100					29,100

Total intangible assets	$	1,384,683	$	(310,338	)	$	1,074,345

The Company recognized $40.9 million and $44.7 million in intangible asset amortization expense during the three months ended December 29, 2013 and December 23, 2012, respectively. The Company recognized $82.5 million and $89.3 million in intangible asset amortization expense during the six months ended December 29, 2013 and December 23, 2012, respectively.

The estimated future amortization expense of purchased intangible assets as of December 29, 2013 is as follows (in thousands):


Fiscal Year	Amount
2014 (6 months)	$	80,250
2015		159,718
2016		157,510
2017		155,790
2018		154,625
Thereafter		258,753

	$	966,646

- 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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