Intangible Assets and Acquisition Related Charges

6 Months Ended

Jun. 29, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Acquisition Related Charges

Intangible Assets and Acquisition Related Charges:

In connection with our acquisition of SiliconBlue in December 2011, we recorded identifiable intangible assets related to developed technology and customer relationships based on guidance for determining fair value under the provisions of ASC 820. The following table summarizes the details of our total purchased intangible assets (in thousands):

	Weighted Average Amortization Period  (in years)	Gross		Accumulated Amortization			Intangible assets, net of amortization June 29, 2013
Developed technology	7	$	10,700	$	(2,357	)	$	8,343
Customer relationships	5.5	7,800		(2,186		)	5,614
Total	6.3	$	18,500	$	(4,543	)	$	13,957

Amortization expense associated with these intangible assets is reported as Acquisition related charges, including the amortization of intangibles in the Consolidated Statements of Operations and Comprehensive Income (Loss) and amounted to $0.7 million in each of the second quarters of the fiscal years ended 2013 and 2012. We expect amortization expense related to these intangible assets to approximate $2.9 million each year in fiscal years 2013 - 2016, $2.2 million in 2017, and $1.5 million in 2018.

Acquisition related charges, including amortization of intangible assets in the Consolidated Statements of Operations and Comprehensive Income (Loss) also include severance and professional fees related to the acquisition, as well as the amortization of the stepped-up value of inventory collectively amounting to $0.0 million and $0.2 million in the second quarter of the fiscal years 2013 and 2012, respectively.