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Goodwill and Purchased and Other Intangibles
9 Months Ended
Aug. 29, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND PURCHASED AND OTHER INTANGIBLES
GOODWILL AND PURCHASED AND OTHER INTANGIBLES
Goodwill as of August 29, 2014 and November 29, 2013 was $4.747 billion and $4.772 billion, respectively. During the second quarter of fiscal 2014, we completed our annual goodwill impairment test associated with our three reporting unitsDigital Media, Digital Marketing and Print and Publishingand determined there was no impairment of goodwill.
Purchased and other intangible assets subject to amortization as of August 29, 2014 and November 29, 2013 were as follows (in thousands): 
 
2014
 
2013
 
Cost
 
Accumulated Amortization
 
Net
 
Cost
 
Accumulated Amortization
 
Net
Purchased technology
$
400,114

 
$
(254,595
)
 
$
145,519

 
$
423,237

 
$
(220,414
)
 
$
202,823

Customer contracts and relationships
$
380,753

 
$
(134,892
)
 
$
245,861

 
$
389,800

 
$
(111,416
)
 
$
278,384

Trademarks
67,105

 
(34,496
)
 
32,609

 
67,546

 
(27,933
)
 
39,613

Acquired rights to use technology
157,827

 
(92,948
)
 
64,879

 
155,322

 
(76,740
)
 
78,582

Localization
1,442

 
(956
)
 
486

 
3,404

 
(2,172
)
 
1,232

Other intangibles
12,473

 
(10,988
)
 
1,485

 
16,447

 
(11,827
)
 
4,620

Total other intangible assets
$
619,600

 
$
(274,280
)
 
$
345,320

 
$
632,519

 
$
(230,088
)
 
$
402,431

Purchased and other intangible assets, net
$
1,019,714

 
$
(528,875
)
 
$
490,839

 
$
1,055,756

 
$
(450,502
)
 
$
605,254


 
In the first quarter of fiscal 2013, we acquired rights to use certain technology for $51.8 million. Of this cost, an estimated $25.3 million was related to future licensing rights that has been capitalized and is being amortized on a straight-line basis over the estimated useful lives ranging from five to ten years. We estimated that the remaining cost of $26.5 million was related to historical use of licensing rights and was expensed as cost of product revenue.   

In the second quarter of fiscal 2014, certain purchased intangibles associated with our acquisitions of Efficient Frontier and Day Software Holding AG became fully amortized and were removed from the Condensed Consolidated Balance Sheets. Amortization expense related to purchased and other intangible assets was $39.1 million and $115.1 million for the three and nine months ended August 29, 2014, respectively. Comparatively, excluding the expense associated with historical use of the acquired rights to use the technology discussed in the paragraph above, amortization expense was $42.2 million and $117.1 million for the three and nine months ended August 30, 2013, respectively. Of these amounts, $26.0 million and $75.1 million were included in cost of sales for the three and nine months ended August 29, 2014, respectively, and $29.4 million and $79.6 million for the three and nine months ended August 30, 2013, respectively.
As of August 29, 2014, we expect amortization expense in future periods to be as follows (in thousands):
Fiscal Year
 
Purchased
Technology
 
Other Intangible
Assets
Remainder of 2014
$
18,692

 
$
18,196

2015
61,000

 
68,267

2016
22,646

 
62,298

2017
15,197

 
52,916

2018
8,803

 
42,021

Thereafter
19,181

 
101,622

Total expected amortization expense
$
145,519

 
$
345,320