XML 56 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Goodwill and Identified Intangibles
6 Months Ended
Jun. 29, 2012
Goodwill and Identified Intangibles [Abstract]  
GOODWILL AND IDENTIFIED INTANGIBLES

NOTE 6: GOODWILL AND IDENTIFIED INTANGIBLES

The following is a summary of identified intangible assets as of June 29, 2012 and December 31, 2011:

 

                                                 
    June 29, 2012     December 31, 2011  
    Gross Carrying
Amount
    Accumulated
Amortization
    Net Carrying
Amount
    Gross Carrying
Amount
    Accumulated
Amortization
    Net Carrying
Amount
 
    (In thousands)  

Identifiable intangibles:

                                               

Existing and core technology

  $ 136,145     $ (92,358   $ 43,787     $ 136,145     $ (81,951   $ 54,194  

Customer relationships/contracts

    67,098       (45,155     21,943       67,098       (42,142     24,956  

Trademarks and trade names

    11,361       (8,430     2,931       11,361       (7,700     3,661  

Supply agreements

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

Maintenance agreements and related relationships

    7,100       (2,887     4,213       7,100       (2,260     4,840  

Software license, intellectual property and assembled workforce

    309       (309     —         309       (309     —    

Order backlog

    2,800       (2,800     —         2,800       (2,800     —    
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total of identifiable intangibles

  $ 228,227     $ (155,353   $ 72,874     $ 228,227     $ (140,576   $ 87,651  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Amortization expense for the identifiable purchased intangible assets for the three months and six months ended June 29, 2012 and July 1, 2011 was allocated as follows:

 

                                 
    Three months ended     Six months ended  
    June 29,
2012
    July 1,
2011
    June 29,
2012
    July 1,
2011
 
    (In thousands)  

Included in cost of revenue

  $ 5,048     $ 5,491     $ 10,408     $ 10,633  

Included in operating expenses

    2,190       2,230       4,369       4,459  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total amortization expense

  $ 7,238     $ 7,721     $ 14,777     $ 15,092  
   

 

 

   

 

 

   

 

 

   

 

 

 

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,

                       

2012 (remaining 6 months)

  $ 10,096     $ 4,336     $ 14,432  

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

  $ 43,787     $ 29,087     $ 72,874  
   

 

 

   

 

 

   

 

 

 

The changes in the carrying amount of goodwill for the six months ended June 29, 2012 are as follows:

 

         
    (In thousands)  

Balance at beginning of period

  $ 212,417  

Foreign currency translation adjustment

    23  
   

 

 

 

Balance at end of period

  $ 212,440