Intangible Assets and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets consist of the following (amounts in millions):
The Company amortizes intangible assets over their expected useful lives, which range between 1 and 15 years. During the year ended March 31, 2018, the Company acquired $7.1 million of core and developed technology which has a weighted average amortization period of 9 years. In fiscal 2018, $26.2 million of in-process research and development intangible assets 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 2019 through fiscal 2023, absent any future acquisitions or impairment charges (amounts in millions):
Amortization expense attributed to intangible assets was $492.2 million, $346.3 million and $179.3 million for fiscal 2018, 2017 and 2016, respectively. 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. In fiscal 2016, $3.6 million was charged to cost of sales and $175.7 million was charged to operating expenses. The Company recognized impairment charges of $0.5 million and $0.6 million in fiscal 2018 and fiscal 2016, respectively. During fiscal 2017, the Company recognized $11.9 million of intangible asset impairment changes, primarily as a result of the acquisition of Atmel. The impairment losses were recognized 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 2018 and fiscal 2017 was as follows (amounts in millions):
At March 31, 2018, 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, 2018, the Company has never recorded an impairment charge against its goodwill balance. |