Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2018

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.

Activity and goodwill balances for the nine months ended March 31, 2018 were as follows:



	Goodwill
	(in thousands)
Balance at June 24, 2017	$	491,015
Acquisition	41,889
Balance at March 31, 2018	$	532,904

No indicators or instances of impairment were identified in the nine months and fiscal year ended March 31, 2018 and June 24, 2017, respectively.

Intangible assets consisted of the following:



	March 31, 2018						June 24, 2017
	Original Cost		Accumulated Amortization		Net		Original Cost		Accumulated Amortization		Net
	(in thousands)
Intellectual property	$	479,645	$	412,111	$	67,534	$	451,885	$	377,806	$	74,079
Customer relationships	116,334		102,596		13,738		115,634		99,812		15,822
Trade name	9,340		8,535		805		8,500		8,086		414
Patents	2,500		2,339		161		2,500		1,948		552
Total amortizable purchased intangible assets	607,819		525,581		82,238		578,519		487,652		90,867
IPR&D	8,610		—		8,610		—		—		—
Total purchased intangible assets	$	616,429	$	525,581	$	90,848	$	578,519	$	487,652	$	90,867

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, 2018		March 25, 2017		March 31, 2018		March 25, 2017
	(in thousands)
Cost of goods sold	$	12,101	$	11,064	$	34,305	$	35,420
Intangible asset amortization	876		2,348		3,623		7,139
Total intangible asset amortization expenses	$	12,977	$	13,412	$	37,928	$	42,559

The following table represents the estimated future amortization expense of intangible assets as of March 31, 2018:



Fiscal Year	Amount
	(in thousands)
Remaining three months of 2018	$	12,395
2019	23,348
2020	13,692
2021	11,992
2022	6,313
Thereafter	14,498
Total intangible assets	$	82,238

- 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