Goodwill and Intangible Assets

12 Months Ended

Jun. 29, 2014

Note 16: Goodwill and Intangible Assets

Goodwill

There were no significant changes in the goodwill balance during the twelve months ended June 29, 2014. Of the $1.5 billion goodwill balance, $61 million is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law.

Intangible Assets

The following table provides the Company’s intangible assets as of June 29, 2014:


	Gross		Accumulated Amortization			Net
	(in thousnds)
Customer relationships	$	615,618	$	(169,162	)	$	446,456
Existing technology		643,922		(224,246	)		419,676
Patents		32,253		(24,407	)		7,846
Other intangible assets		35,270		(35,270	)		—

Intangible assets subject to amortization		1,327,063		(453,085	)		873,978
In process research and development		11,000					11,000
Development rights		9,100					9,100

Intangible assets not subject to amortization		20,100					20,100

Total intangible assets	$	1,347,163	$	(453,085	)	$	894,078

The following table provides details of the Company’s intangible assets as of June 30, 2013:


	Gross		Accumulated Amortization			Net
	(in thousnds)
Customer relationships	$	624,686	$	(103,519	)	$	521,167
Existing technology		653,628		(139,894	)		513,734
Patents		32,053		(22,036	)		10,017
Backlog		10,000		(10,000	)		—
Other intangible assets		35,216		(34,889	)		327

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 $163.2 million, $177.6 million, and $26.9 million, in intangible asset amortization expense during fiscal years 2014, 2013, and 2012, respectively. 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.

The estimated future amortization expense of intangible assets, excluding those with indefinite lives, as of June 29, 2014 was as follows:


Fiscal Year	Amount
	(in thousnds)
2014	$	156,719
2015		154,215
2016		152,494
2017		151,398
2018		120,254
Thereafter		138,898

	$	873,978

Intangible assets acquired during the 2014 fiscal year were as follows:


	Amount		Weighted- Average Useful Life
	(in thousands)		(Years)
Customer relationships	$	1,800	7
Existing technology		7,228	6
Patents		200	5

Total acquired intangible assets	$	9,228	6

- 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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