Goodwill and Intangible Assets

3 Months Ended

Jul. 01, 2012

Goodwill and Intangible Assets [Abstract]

GOODWILL AND INTANGIBLE ASSETS

NOTE 5. GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. We evaluate goodwill for impairment on an annual basis or whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. We conduct our annual impairment analysis in the fourth quarter of each fiscal year. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss. Because we have one reporting unit, we utilize an entity-wide approach to assess goodwill for impairment. As of July 1, 2012, no events or changes in circumstances suggest that the carrying amount for goodwill may not be recoverable and therefore we did not perform an interim goodwill impairment analysis.

Intangible Assets

Our purchased intangible assets as of the dates indicated below were as follows (in thousands):

	July 1, 2012							April 1, 2012
	Carrying Amount		Accumulated Amortization			Net Carrying Amount		Carrying Amount		Accumulated Amortization			Net Carrying Amount
Existing technology	$	35,236	$	(28,151	)	$	7,085	$	34,848	$	(27,286	)	$	7,562
Patents/Core technology		3,736		(2,983	)		753		3,736		(2,855	)		881
Distributor relationships		1,264		(1,144	)		120		1,264		(1,119	)		145
Customer relationships		2,905		(1,833	)		1,072		2,905		(1,751	)		1,154
Tradenames/Trademarks		1,025		(1,025	)		—		1,025		(1,012	)		13
Total	$	44,166	$	(35,136	)	$	9,030	$	43,778	$	(34,023	)	$	9,755

Long-lived assets are amortized on a straight-line basis over their respective estimated useful lives. We evaluate the remaining useful life of our long-lived assets that are being amortized each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the long-lived asset is amortized prospectively over the remaining useful life. Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an indicator of impairment exists, we compare the carrying value of long-lived assets to our projection of future undiscounted cash flows attributable to such assets and, in the event that the carrying value exceeds the future undiscounted cash flows, we record an impairment charge equal to the excess of the carrying value over the asset’s fair value. Although the assumptions used in projecting future revenues and gross margins are consistent with those used in our annual strategic planning process, intangible asset impairment charges might be required in future periods if our assumptions are not achieved.

As of July 1, 2012, there were no indicators that required us to perform an intangible assets impairment review.

The aggregate amortization expenses for our purchased intangible assets for the periods indicated below were as follows:

		Three Months Ended
	Weighted Average Lives	July 1, 2012		July 3, 2011
	(in months)	(in thousands)
Existing technology	66	$	865	$	949
Patents/Core technology	61		128		129
Distributor relationships	72		25		25
Customer relationships	80		82		81
Tradenames/Trademarks	35		13		67
Total		$	1,113	$	1,251

The estimated future amortization expenses for our purchased intangible assets are summarized below (in thousands):

Amortization Expense (by fiscal year)
2013 (9 months remaining)	$	3,127
2014		3,692
2015		1,301
2016		704
2017		182
2018 and thereafter		24
Total estimated amortization	$	9,030