Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets [Text Block]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or more often if events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company performed the annual impairment analysis during the first quarter of fiscal year 2012 and concluded that goodwill was not impaired, as the fair value of each reporting unit exceeded its carrying value, including goodwill.

Activity and goodwill balances for the nine months ended March 31, 2012 were as follows:



	Goodwill
	(in thousands)
Balance at June 25, 2011	$	265,125
Acquisitions	160,299
Divestitures	(9,728		)
Adjustments	7,377
Balance at March 31, 2012	$	423,073

In the first nine months of fiscal 2012, the Company adjusted the carrying values of certain acquired assets and liabilities primarily related to fiscal 2011 and 2012 acquisitions IPR&D, intangibles and taxes related balances.

Intangible Assets

The useful lives of amortizable intangible assets are as follows:



Asset		Life
Intellectual Property		5-10 years
Customer Relationships		3-10 years
Tradename		3 years
Backlog		1 year

Intangible assets consisted of the following:



	March 31, 2012						June 25, 2011
	Original Cost		Accumulated Amortization		Net		Original Cost		Accumulated Amortization		Net
	(in thousands)
Intellectual property	$	226,412	$	92,907	$	133,505	$	195,912	$	64,996	$	130,916
Customer relationships	95,230		35,853		59,377		88,630		24,915		63,715
Backlog	6,400		6,400		—		6,400		5,687		713
Tradename	2,100		1,408		692		1,700		981		719
Total amortizable purchased intangible assets	330,142		136,568		193,574		292,642		96,579		196,063
IPR&D	28,780		—		28,780		8,200		—		8,200
Total purchased intangible assets	$	358,922	$	136,568	$	222,354	$	300,842	$	96,579	$	204,263

The following table presents the amortization expense of intangible assets and its presentation in the Condensed Consolidated Statements of Income:



	Three Months Ended				Nine Months Ended
	March 31, 2012		March 26, 2011		March 31, 2012		March 26, 2011
	(in thousands)
Cost of goods sold	$	9,787	$	7,919	$	27,301	$	22,187
Intangible asset amortization	4,029		4,092		12,688		14,552
Total intangible asset amortization expenses	$	13,816	$	12,011	$	39,989	$	36,739

The following table represents the estimated future amortization expense of intangible assets as of March 31, 2012:



Fiscal Year	Amount
	(in thousands)
Remaining three months of 2012	$	13,441
2013	51,899
2014	40,995
2015	39,952
2016	27,661
2017	17,983
Thereafter	1,643
Total	$	193,574

- 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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