Goodwill and Intangible Assets

9 Months Ended

Mar. 29, 2014

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 goodwill impairment analysis during the first quarter of fiscal year 2014 and concluded that goodwill was not impaired, as the fair value of each reporting unit exceeded its carrying value.

Activity and goodwill balances for the nine months ended March 29, 2014 were as follows:



	Goodwill
	(in thousands)
Balance at June 29, 2013	$	422,004
Acquisitions	175,493
Adjustments	179
Balance at March 29, 2014	$	597,676

Intangible Assets

The useful lives of amortizable intangible assets are as follows:



Asset		Life
Intellectual property		3 months-10 years
Customer relationships		5-10 years
Trade name		3-4 years
Backlog		4 months
Patents		5 years

Intangible assets consisted of the following:



	March 29, 2014						June 29, 2013
	Original Cost		Accumulated Amortization		Net		Original Cost		Accumulated Amortization		Net
	(in thousands)
Intellectual property	$	435,962	$	182,773	$	253,189	$	230,562	$	136,870	$	93,692
Customer relationships	120,230		65,262		54,968		95,230		54,308		40,922
Tradename	8,500		2,836		5,664		2,100		1,950		150
Backlog	1,000		1,000		—		—		—		—
Patent	2,500		256		2,244		—		—		—
Total amortizable purchased intangible assets	568,192		252,127		316,065		327,892		193,128		134,764
IPR&D	68,102		—		68,102		22,382		—		22,382
Total purchased intangible assets	$	636,294	$	252,127	$	384,167	$	350,274	$	193,128	$	157,146

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 29, 2014		March 30, 2013		March 29, 2014		March 30, 2013
	(in thousands)
Cost of goods sold	$	18,542	$	7,777	$	45,732	$	26,217
Intangible asset amortization	4,863		3,903		13,267		11,855
Total intangible asset amortization expenses	$	23,405	$	11,680	$	58,999	$	38,072

The following table represents the estimated future amortization expense of intangible assets as of March 29, 2014:



Fiscal Year	Amount
	(in thousands)
Remaining three months of 2014	$	23,172
2015	90,443
2016	74,454
2017	61,782
2018	41,927
2019	13,278
Thereafter	11,009
Total intangible assets	$	316,065

- 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