GOODWILL AND IDENTIFIED INTANGIBLES

9 Months Ended

Sep. 28, 2012

NOTE 6: GOODWILL AND IDENTIFIED INTANGIBLES

The following is a summary of identified intangible assets as of September 28, 2012 and December 31, 2011:


	September 28, 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	$	(97,406	)	$	38,739	$	136,145	$	(81,951	)	$	54,194
Customer relationships/contracts		67,098		(46,661	)		20,437		67,098		(42,142	)		24,956
Trademarks and tradenames		11,361		(8,790	)		2,571		11,361		(7,700	)		3,661
Supply agreements		3,414		(3,414	)		—		3,414		(3,414	)		—
Maintenance agreements and related relationships		7,100		(3,200	)		3,900		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	$	(162,580	)	$	65,647	$	228,227	$	(140,576	)	$	87,651

Amortization expense for the identifiable purchased intangible assets for the three months and nine months ended September 28, 2012 and September 30, 2011 was allocated as follows:


	Three months ended				Nine months ended
	September 28, 2012		September 30, 2011		September 28, 2012		September 30, 2011
	(In thousands)
Included in cost of revenue	$	5,048	$	5,446	$	15,456	$	16,079
Included in operating expenses		2,179		2,229		6,548		6,688

Total amortization expense	$	7,227	$	7,675	$	22,004	$	22,767

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 3 months)	$	5,048	$	2,157	$	7,205
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	$	38,739	$	26,908	$	65,647

The changes in the carrying amount of goodwill for the nine months ended September 28, 2012 are as follows:


	(In thousands)
Balance at beginning of period	$	212,417
Foreign currency translation adjustment		106

Balance at end of period	$	212,523

- 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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