Goodwill and Identified Intangibles

6 Months Ended

Jul. 01, 2011

Goodwill and Identified Intangibles [Abstract]

NOTE 6: GOODWILL AND IDENTIFIED INTANGIBLES

The following is a summary of goodwill and intangible assets as of July 1, 2011 and December 31, 2010:


	July 1, 2011							December 31, 2010
	Gross Carrying		Accumulated			Net Carrying		Gross Carrying		Accumulated			Net Carrying
	Amount		Amortization			Amount		Amount		Amortization			Amount
	(In thousands)
Identifiable intangibles:
Existing and core technology	$	136,210	$	(71,146	)	$	65,064	$	127,146	$	(60,453	)	$	66,693
In-process technology		—		—			—		9,000		—			9,000
Customer relationships/contracts		67,100		(39,132	)		27,968		67,098		(36,117	)		30,981
Trademarks and tradenames		11,371		(6,890	)		4,481		11,361		(6,060	)		5,301
Supply agreements		3,431		(3,431	)		—		3,414		(3,414	)		—
Maintenance agreements and related relationships		7,100		(1,634	)		5,466		7,100		(1,008	)		6,092
Software license, intellectual property and assembled workforce		309		(309	)		—		309		(306	)		3
Order backlog		2,800		(2,800	)		—		2,800		(2,800	)		—

Subtotal of identifiable intangibles		228,321		(125,342	)		102,979		228,228		(110,158	)		118,070
Goodwill		212,210		—			212,210		211,878		—			211,878

Total goodwill and other intangibles	$	440,531	$	(125,342	)	$	315,189	$	440,106	$	(110,158	)	$	329,948

The changes in the carrying amount of goodwill for the six months ended July 1, 2011 are as follows:


	(In thousands)
Balance at December 31, 2010		$	211,878
Adjustment to deferred tax asset associated with the acquisition of Omneon			244
Foreign currency translation adjustment			88

Balance at July 1, 2011		$	212,210

For the three and six months ended July 1, 2011, the Company recorded a total of $7.7 million and $15.1 million of amortization expense for identified intangibles, of which $5.5 million and $10.6 million was included in cost of revenue, respectively. For the three and six months ended July 2, 2010, the Company recorded a total of $2.6 million and $5.2 million of amortization expense for identified intangibles, of which $2.1 million and $4.2 million was included in cost of revenue, respectively. The estimated future amortization expense of purchased intangible assets with definite lives is as follows:


	Cost of		Operating
	Revenue		Expenses		Total
	(In thousands)
Years ending December 31,
2011 (remaining 6 months)	$	10,869	$	4,449	$	15,318
2012		20,504		8,715		29,219
2013		19,232		8,096		27,328
2014		13,745		6,775		20,520
2015		714		5,783		6,497
2016		—		4,097		4,097

Total	$	65,064	$	37,915	$	102,979

- 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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