Intangible Assets and Goodwill

12 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets consist of the following (in millions):



	March 31, 2019
	Gross Amount		Accumulated Amortization			Net Amount
Core and developed technology	$	7,413.0	$	(1,112.9	)	$	6,300.1
Customer-related	917.1		(544.0		)	373.1
In-process research and development	7.7		—			7.7
Distribution rights	0.3		(0.2		)	0.1
Other	7.3		(2.7		)	4.6
Total	$	8,345.4	$	(1,659.8	)	$	6,685.6



	March 31, 2018
	Gross Amount		Accumulated Amortization			Net Amount
Core and developed technology	$	1,952.3	$	(644.4	)	$	1,307.9
Customer-related	716.9		(375.9		)	341.0
In-process research and development	12.1		—			12.1
Distribution rights	0.3		(0.1		)	0.2
Other	1.5		(0.7		)	0.8
Total	$	2,683.1	$	(1,021.1	)	$	1,662.0

The Company amortizes intangible assets over their expected useful lives, which range between 1 and 15 years. During the year ended March 31, 2019, due to the acquisition of Microsemi, the Company acquired $4.57 billion of core and developed technology which has a weighted average amortization period of 15 years, $200.2 million of customer-related intangible assets which have a weighted average amortization period of 12 years, $12.3 million of intangible assets related to

backlog with an amortization period of 1 year, $5.8 million of other intangible assets which have a weighted average amortization period of 4 years, and $847.1 million of in-process technology. In fiscal 2019, $851.5 million of in-process research and development intangible assets, primarily consisting of intangible assets acquired in the acquisition of Microsemi, reached technological feasibility and was reclassified as core and developed technology and began being amortized over the respective estimated useful lives. The following is an expected amortization schedule for the intangible assets for fiscal 2020 through fiscal 2024, absent any future acquisitions or impairment charges (in millions):



Fiscal Year Ending March 31,	Projected Amortization Expense
2020	$1,005.8
2021	$944.1
2022	$873.1
2023	$680.0
2024	$608.3

Amortization expense attributed to intangible assets was $695.8 million, $492.2 million and $346.3 million for fiscal years 2019, 2018 and 2017, respectively. In fiscal 2019, $9.6 million was charged to cost of sales and $686.2 million was charged to operating expenses. In fiscal 2018, $6.1 million was charged to cost of sales and $486.1 million was charged to operating expenses. In fiscal 2017, $4.0 million was charged to cost of sales and $342.3 million was charged to operating expenses. The Company recognized impairment charges of $3.1 million, $0.5 million and $11.9 million in fiscal 2019, 2018 and fiscal 2017, respectively. The impairment charges of $3.1 million in fiscal 2019 were recognized as a result of writing off intangible assets purchased from Microsemi prior to the close of the acquisition and as a result of the changes in the combined product roadmaps after the acquisition of Microsemi that affected the use and life of these assets. The impairment charges of $11.9 million in fiscal 2017 were recognized primarily as a result of the acquisition of Atmel and as a result of changes in the combined product roadmaps after the acquisition of Atmel that affected the use and life of these assets.

Goodwill activity for fiscal 2019 and fiscal 2018 was as follows (in millions):



	Semiconductor Products Reporting Unit		Technology Licensing Reporting Unit
Balance at March 31, 2017 and 2018	$	2,279.8	$	19.2
Additions due to the acquisition of Microsemi	4,364.9		—
Balance at March 31, 2019	$	6,644.7	$	19.2

At March 31, 2019, the Company applied a qualitative goodwill impairment test to its two reporting units, concluding it was not more likely than not that goodwill was impaired. Through March 31, 2019, the Company has never recorded an impairment charge against its goodwill balance.