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Goodwill and Identified Intangibles
9 Months Ended
Sep. 30, 2011
Goodwill and Identified Intangibles [Abstract] 
GOODWILL AND IDENTIFIED INTANGIBLES

NOTE 6: GOODWILL AND IDENTIFIED INTANGIBLES

The following is a summary of goodwill and intangible assets as of September 30, 2011 and December 31, 2010:

 

                                                 
    September 30, 2011     December 31, 2010  
    Gross Carrying
Amount
    Accumulated
Amortization
    Net Carrying
Amount
    Gross Carrying
Amount
    Accumulated
Amortization
    Net Carrying
Amount
 
    (In thousands)  

Identifiable intangibles:

                                               

Existing and core technology

  $ 136,163     $ (76,545   $ 59,618     $ 127,146     $ (60,453   $ 66,693  

In-process technology

    —         —         —         9,000       —         9,000  

Customer relationships/contracts

    67,099       (40,637     26,462       67,098       (36,117     30,981  

Trademarks and tradenames

    11,364       (7,293     4,071       11,361       (6,060     5,301  

Supply agreements

    3,419       (3,419     —         3,414       (3,414     —    

Maintenance agreements and related relationships

    7,100       (1,948     5,152       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

    228,254       (132,951     95,303       228,228       (110,158     118,070  

Goodwill

    212,443       —         212,443       211,878       —         211,878  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total goodwill and other intangibles

  $ 440,697     $ (132,951   $ 307,746     $ 440,106     $ (110,158   $ 329,948  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The changes in the carrying amount of goodwill for the nine months ended September 30, 2011 are as follows:

 

         
    (In thousands)  

Balance at December 31, 2010

  $ 211,878  

Adjustment to deferred tax asset associated with the acquisition of Omneon

    (527

Adjustment to income tax payable associated with the acquisition of Omneon

    771  

Adjustment to fixed assets associated with the acquisition of Omneon

    298  

Foreign currency translation adjustment

    23  
   

 

 

 

Balance at September 30, 2011

  $ 212,443  
   

 

 

 

For the three and nine months ended September 30, 2011, the Company recorded a total of $7.7 million and $22.8 million of amortization expense for identified intangibles, of which $5.4 million and $16.1 million was included in cost of revenue, respectively. For the three and nine months ended October 1, 2010, the Company recorded a total of $3.7 million and $8.9 million of amortization expense for identified intangibles, of which $2.7 million and $6.9 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 Revenue     Operating
Expenses
    Total  
    (In thousands)  

Years ending December 31,

                       

2011 (remaining 3 months)

  $ 5,423     $ 2,219     $ 7,642  

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

  $ 59,618     $ 35,685     $ 95,303