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Goodwill and Acquired Intangible Assets
 12 Months Ended
Jun. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Acquired Intangible Assets

7. Goodwill and Acquired Intangible Assets

The following table presents our goodwill balance as of June 2024 and June 2023 (in millions):

 

 

 

 

 

 

 

2024

 

 

2023

 

Beginning balance

$

816.4

 

 

$

806.6

 

Acquisition activity

 

—

 

 

 

9.8

 

Ending balance

$

816.4

 

 

$

816.4

 

The following table summarizes the life, the gross carrying value of our acquired intangible assets, and the related accumulated amortization as of the end of fiscal 2024 and 2023 (in millions):

 

 

 

 

 

 

2024

 

 

2023

 

 

 

Weighted Average
Life in Years

 

 

Gross Carrying
Value

 

 

Accumulated
Amortization

 

 

Net Carrying
Value

 

 

Gross Carrying
Value

 

 

Accumulated
Amortization

 

 

Net Carrying
Value

 

Audio and video technology

 

 

5.6

 

 

$

231.9

 

 

$

(175.5

)

 

$

56.4

 

 

$

231.9

 

 

$

(150.7

)

 

$

81.2

 

Customer relationships

 

 

4.1

 

 

158.2

 

 

 

(134.1

)

 

 

24.1

 

 

 

158.2

 

 

 

(117.8

)

 

 

40.4

 

Wireless connectivity technology

 

 

5.5

 

 

 

245.5

 

 

 

(90.1

)

 

 

155.4

 

 

 

158.0

 

 

 

(58.0

)

 

 

100.0

 

Video interface technology

 

 

3.4

 

 

 

133.0

 

 

 

(85.2

)

 

 

47.8

 

 

 

82.0

 

 

 

(79.7

)

 

 

2.3

 

Human presence detection technology

 

 

5.0

 

 

 

5.2

 

 

 

(1.7

)

 

 

3.5

 

 

 

5.2

 

 

 

(0.7

)

 

 

4.5

 

Licensed technology and other

 

 

4.4

 

 

10.7

 

 

 

(9.6

)

 

 

1.1

 

 

 

10.8

 

 

 

(8.9

)

 

 

1.9

 

Patents

 

 

8.0

 

 

4.4

 

 

 

(4.4

)

 

 

—

 

 

 

4.4

 

 

 

(4.3

)

 

 

0.1

 

Tradename

 

 

4.4

 

 

 

5.8

 

 

 

(5.7

)

 

 

0.1

 

 

 

5.8

 

 

 

(4.7

)

 

 

1.1

 

In process research and development

 

Not applicable

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

67.0

 

 

 

—

 

 

 

67.0

 

Acquired intangibles totals

 

 

4.9

 

$

794.7

 

 

$

(506.3

)

 

$

288.4

 

 

$

723.3

 

 

$

(424.8

)

 

$

298.5

 

During fiscal 2024, we retired $4.4 million of fully amortized patents that reached the end or their useful life. During fiscal 2023, we retired $20.4 million of fully amortized display driver technology.

Amortization expense is calculated using the straight-line method over the estimated useful lives of the acquired intangibles. The total amortization expense for the acquired intangible assets was $81.6 million in fiscal 2024, $130.4 million in fiscal 2023, and $123.5 million in fiscal 2022. This amortization expense was included in our consolidated statements of operations as acquired intangibles amortization and cost of revenue.

The following table presents expected annual aggregate amortization expense in future fiscal years (in millions):

 

2025

$

97.9

 

2026

 

84.8

 

2027

 

50.0

 

2028

 

 

33.9

 

2029

 

 

15.5

 

Thereafter

 

6.3

 

Future amortization

$

288.4

 

 

Impairment of indefinite-lived intangible asset

During fiscal 2024, we recorded an indefinite-lived intangible asset impairment charge of $16.0 million on our in-process research and development, or IPR&D, from our December 2021 acquisition of DSPG. We recorded the impairment charge as an operating expense in our consolidated statement of operations. We recorded the impairment charge due to a lack of commitment from certain key customers, no anticipated customer migration to the IPR&D technologies acquired from DSPG, and no further development or investment planned for this project.