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Note 5 - Intangible Assets
9 Months Ended
Oct. 28, 2017
Notes to Financial Statements  
Business Combination Disclosure [Text Block]
5
.
Intangible assets
 
The tables below present the balances of our intangible assets (in thousands, except for years):
 
   
October 2
8
, 201
7
 
   
Gross
Value
   
Impairment
   
Accumulated Amortization
and Effect of Currency Translation
   
Net Value
   
Weighted
Average Remaining Amortization Period
(Years)
 
Acquired intangible assets:
                                       
Developed technology
  $
85,427
    $
(24,614
)
  $
(54,087
)
  $
6,726
     
7.1
 
Customer relationships
   
54,505
     
(30,486
)
   
(21,305
)
   
2,714
     
5.0
 
Trademarks and other
   
4,078
     
-
     
(3,948
)
   
130
     
1.1
 
Purchased IP - amortizing
   
35,233
     
(6,716
)
   
(25,036
)
   
3,481
     
1.8
 
Total amortizing
   
179,243
     
(61,816
)
   
(104,376
)
   
13,051
     
5.2
 
Purchased IP - not yet deployed
   
20,137
     
(11,231
)
   
-
     
8,906
     
 
 
Total intangibles
  $
199,380
    $
(73,047
)
  $
(104,376
)
  $
21,957
     
 
 
 
 
   
January 28
, 201
7
 
   
Gross
Value
   
Impairment
   
Accumulated Amortization
and Effect of Currency Translation
   
Net Value
   
Weighted
Average Remaining Amortization Period
(Years)
 
Acquired intangible assets:
                                       
Developed technology
  $
85,427
    $
(24,614
)
  $
(52,854
)
  $
7,959
     
7.4
 
Customer relationships
   
54,505
     
(30,486
)
   
(20,897
)
   
3,122
     
5.8
 
Trademarks and other
   
4,078
     
-
     
(3,858
)
   
220
     
1.9
 
Purchased IP - amortizing
   
36,007
     
(5,516
)
   
(23,057
)
   
7,434
     
2.3
 
Total amortizing
   
180,017
     
(60,616
)
   
(100,666
)
   
18,735
     
5.0
 
Purchased IP - not yet deployed
   
16,449
     
(4,440
)
   
-
     
12,009
     
 
 
Total intangibles
  $
196,466
    $
(65,056
)
  $
(100,666
)
  $
30,744
     
 
 
 
Acquired intangible assets represent intangible assets acquired through business combinations. Purchased intellectual property (“IP”) represents intangible assets acquired through direct purchases of licensed technology from vendors which is incorporated into our products
. Purchased IP
not
yet deployed relates to purchased IP from
third
parties for our products that are currently in development. We begin amortizing such IP upon the earlier of the beginning of the term of the license agreement, as appropriate, or at the time we begin shipment of the associated products into which such IP is incorporated.
 
As part of our restructuring plan as discuss
ed in Note
7,
we recorded an impairment charge for purchased IP of
$5.0
million and
$8.0
million for the
three
and
nine
months ended
October 28, 2017,
respectively.
 
The following table presents the amortization of intangible assets in the accompanying condensed consolidated statements of operations (in thousands):
 
   
Three Months Ended
   
Nine
Months Ended
 
   
October 2
8
,
201
7
   
October 29
,
201
6
   
October 2
8
,
201
7
   
October 29
,
201
6
 
Cost of
revenue
  $
845
    $
2,025
    $
3,138
    $
6,053
 
Operating expenses
   
444
     
709
     
1,339
     
2,139
 
Total intangibles amortization expense
  $
1,289
    $
2,734
    $
4,477
    $
8,192
 
 
As of
October 28
,
2017,
we expect amortization expense in future periods to be as follows (in thousands):
 
Fiscal year
 
Total
 
201
8 (remaining three months)
  $
1,038
 
201
9
   
3,718
 
2020
   
2,432
 
20
21
   
1,588
 
20
22
   
1,243
 
Thereafter
   
3,032
 
Total
  $
13,051