Intangible Assets and Goodwill (Notes)

12 Months Ended

Mar. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

Intangible assets consist of the following (amounts in thousands):



	March 31, 2012
	Gross Amount		Accumulated Amortization			Net Amount
Developed technology	$	94,681	$	(35,920	)	$	58,761
Customer-related	20,400		(4,633		)	15,767
Trademarks and trade names	1,730		(684		)	1,046
Backlog	2,410		(2,410		)	—
In-process technology	14,086		—			14,086
Distribution rights	5,236		(4,660		)	576
Covenants not to compete	400		(200		)	200
	$	138,943	$	(48,507	)	$	90,436



	March 31, 2011
	Gross Amount		Accumulated Amortization			Net Amount
Developed technology	$	83,751	$	(27,705	)	$	56,046
Customer-related	15,600		(1,621		)	13,979
Trademarks and trade names	1,730		(250		)	1,480
Backlog	2,410		(1,709		)	701
In-process technology	4,300		—			4,300
Distribution rights	5,236		(4,147		)	1,089
Covenants not to compete	400		(66		)	334
	$	113,427	$	(35,498	)	$	77,929

The Company amortizes intangible assets over their expected useful lives, which range between 1 and 10 years. In fiscal 2012, the Company acquired $10.9 million of developed technology which has a weighted average amortization period of 10 years, $4.8 million of customer-related intangible assets which has a weighted average amortization period of 10 years and $9.8 million of in-process technology which will begin amortization once the technology reaches technological feasibility. The following is an expected amortization schedule for the intangible assets for fiscal year 2013 through fiscal year 2017, absent any future acquisitions or impairment charges (amounts in thousands):



Year ending March 31,	Projected Amortization Expense
2013	$13,218
2014	13,042
2015	12,901
2016	10,784
2017	9,134

Amortization expense attributed to intangible assets was $13.0 million, $13.9 million and $3.7 million for fiscal years 2012, 2011 and 2010, respectively. In fiscal year 2012, approximately $8.2 million was charged to cost of sales and approximately $4.8 million was charged to operating expenses. In fiscal year 2011, approximately $7.8 million was charged to cost of sales and approximately $6.1 million was charged to operating expenses. In fiscal 2010, approximately $1.9 million was charged to cost of sales and $1.8 million was charged to operating expenses. The Company found no indication of impairment of its intangible assets in fiscal years 2012, 2011 or 2010.

Goodwill activity for fiscal years 2012 and 2011 was as follows (amounts in thousands):



	Semiconductor Products Reporting Unit		Technology Licensing Reporting Unit
Balance at March 31, 2010	$	40,338	$	—
Additions due to the acquisition of SST	5,761		19,200
Additions due to contingent consideration payments to previous owners of R&E International	9,747		—
Additions due to other acquisitions	972		—
Balance at March 31, 2011	56,818		19,200
Additions due to contingent consideration payments to previous owners of R&E International	120		—
Additions due to other acquisitions	17,375		—
Balance at March 31, 2012	$	74,313	$	19,200

In the year ended March 31, 2011, the Company completed the process of allocating goodwill to its reporting units as it related to the acquisition of SST. As a result, approximately $19.2 million was allocated to the technology licensing reporting unit and approximately $5.8 million was allocated to the semiconductor products reporting unit.

In the years ended March 31, 2012 and 2011, the Company made contingent consideration payments to the previous owners of R&E International in the amount of $0.1 million and $12.1 million, respectively. The Company acquired R&E International on March 31, 2009. The fiscal 2011 contingent consideration payment resulted in the de-recognition of negative goodwill in the amount of approximately $2.4 million recorded on the acquisition date and the recognition of approximately $9.7 million of goodwill which was allocated to the semiconductor products reporting unit.

In the year ended March 31, 2012, the Company acquired Ident Technology AG. This acquisition resulted in approximately $17.4 million of goodwill which was allocated to the semiconductor products reporting unit.

At March 31, 2012, $74.3 million of goodwill was recorded in the Company's semiconductor products reporting unit and $19.2 million was recorded in the Company's technology licensing reporting unit. At March 31, 2012, the Company applied a qualitative goodwill impairment screen to its two reporting units, concluding it was not more likely than not that goodwill was impaired. Through March 31, 2012, the Company has never recorded an impairment charge against its goodwill balance.

- 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.

+ References+ Details