Intangible Assets and Goodwill (Notes)

12 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

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



	March 31, 2014
	Gross Amount		Accumulated Amortization			Net Amount
Developed technology	$	402,669	$	(117,222	)	$	285,447
Customer-related	195,800		(109,170		)	86,630
Trademarks and trade names	15,730		(7,118		)	8,612
Backlog	24,610		(24,610		)	—
In-process technology	64,396		—			64,396
Distribution rights	5,585		(5,171		)	414
Covenants not to compete	400		(400		)	—
	$	709,190	$	(263,691	)	$	445,499



	March 31, 2013
	Gross Amount		Accumulated Amortization			Net Amount
Developed technology	$	375,006	$	(69,107	)	$	305,899
Customer-related	194,500		(68,522		)	125,978
Trademarks and trade names	15,730		(3,941		)	11,789
Backlog	24,610		(17,310		)	7,300
In-process technology	78,968		—			78,968
Distribution rights	5,236		(5,101		)	135
Covenants not to compete	400		(333		)	67
	$	694,450	$	(164,314	)	$	530,136

The Company amortizes intangible assets over their expected useful lives, which range between 1 and 15 years. In fiscal 2014, the Company acquired $12.7 million of developed technology which has a weighted average amortization period of 11 years, $1.3 million of customer-related intangible assets which has a weighted average amortization period of 5 years, $0.3 million of distribution rights which has a weighted average amortization period of 10 years and $0.8 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 2015 through fiscal 2019, absent any future acquisitions or impairment charges (amounts in thousands):



Year ending March 31,	Projected Amortization Expense
2015	$132,951
2016	91,711
2017	61,997
2018	46,724
2019	38,730

Amortization expense attributed to intangible assets was $99.4 million, $115.8 million and $13.0 million for fiscal years 2014, 2013 and 2012, respectively. In fiscal 2014, approximately $4.7 million was charged to cost of sales and approximately $94.7 million was charged to operating expenses. In fiscal 2013, approximately $3.9 million was charged to cost of sales and approximately $111.9 million was charged to operating expenses. In fiscal 2012, $1.4 million was charged to cost of sales and $11.6 million was charged to operating expenses. The Company recognized impairment charges of $0.4 million in fiscal 2014. The Company found no indication of impairment of its intangible assets in fiscal 2013 or 2012.

Goodwill activity for fiscal years 2014 and 2013 was as follows (amounts in thousands):



	Semiconductor Products Reporting Unit			Technology Licensing Reporting Unit
Balance at March 31, 2012	$	74,313		$	19,200
Additions due to the acquisition of SMSC	169,065			—
Additions due to the acquisition of Roving Networks	8,652			—
Additions due to contingent consideration payments	118			—
Balance at March 31, 2013	252,148			19,200
Adjustments due to the acquisition of SMSC	(3,473		)	—
Additions due to other acquisitions	8,111			—
Additions due to contingent consideration payments	111			—
Balance at March 31, 2014	$	256,897		$	19,200

In fiscal 2014, the Company completed several acquisitions which resulted in goodwill of approximately $8.1 million which was allocated to the semiconductor products reporting unit. Also, during fiscal 2014, the Company made adjustments to the purchase price allocation of its SMSC acquisition of approximately $3.5 million.

In fiscal 2013, the Company acquired SMSC and Roving Networks. The SMSC acquisition resulted in approximately $169.1 million of goodwill which was allocated to the semiconductor products reporting unit. The Roving Networks acquisition resulted in approximately $8.7 million of goodwill which was allocated to the semiconductor products reporting unit.

At March 31, 2014, $256.9 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, 2014, 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, 2014, 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.

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