Goodwill and Acquired Intangibles

6 Months Ended

Jul. 02, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill during the six months ended July 2, 2016 were as follows:



	Gross Carrying Amount
	(In thousands)
Balance as of January 2, 2016	$	551,772
Goodwill resulting from acquisitions	23,579
Effect of foreign currency translation	(1,637		)
Balance as of July 2, 2016	$	573,714

Acquired Intangibles, Net

Acquired intangibles as of July 2, 2016 were as follows, excluding intangibles that were fully amortized as of January 2, 2016:



	Gross Carrying Amount		Accumulated Amortization			Acquired Intangibles, Net
	(In thousands)
Existing technology	$	342,575	$	(139,895	)	$	202,680
Agreements and relationships	174,677		(93,156		)	81,521
Tradenames, trademarks and patents	9,806		(6,119		)	3,687
Total acquired intangibles	$	527,058	$	(239,170	)	$	287,888

Acquired intangibles as of January 2, 2016 were as follows, excluding intangibles that were fully amortized as of January 3, 2015:



	Gross Carrying Amount		Accumulated Amortization			Acquired Intangibles, Net
	(In thousands)
Existing technology	$	329,627	$	(124,097	)	$	205,530
Agreements and relationships	173,325		(86,808		)	86,517
Tradenames, trademarks and patents	10,119		(5,684		)	4,435
Total acquired intangibles	$	513,071	$	(216,589	)	$	296,482

Amortization expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization of acquired intangibles for the three and six months ended July 2, 2016 and July 4, 2015 was as follows:



	Three Months Ended				Six Months Ended
	July 2, 2016		July 4, 2015		July 2, 2016		July 4, 2015
	(In thousands)
Cost of product and maintenance	$	10,546	$	10,105	$	21,209	$	20,278
Amortization of acquired intangibles	4,537		6,119		10,317		12,350
Total amortization of acquired intangibles	$	15,083	$	16,224	$	31,526	$	32,628

Estimated amortization expense for intangible assets with definite lives for the following five fiscal years and thereafter is as follows:



	(In thousands)
2016 – remaining period	$	28,966
2017	56,093
2018	52,280
2019	45,241
2020	40,035
Thereafter	65,273
Total estimated amortization expense	$	287,888

- 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.

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