Goodwill and intangible assets

3 Months Ended

Oct. 01, 2016

4. Goodwill and intangible assets

Goodwill

The following table presents the change in goodwill by reportable segment for the three months ended October 1, 2016. All of the accumulated impairment was recognized in fiscal 2009.


	Electronics		Technology
	Marketing		Solutions		Total
	(Thousands)
Gross goodwill	$	1,666,962	$	993,992	$	2,660,954
Accumulated impairment		(1,045,110)		(334,624)		(1,379,734)
Carrying value at July 2, 2016		621,852		659,368		1,281,220
Additions		—		—		—
Adjustments		—		—		—
Foreign currency translation		(1,002)		2,444		1,442
Carrying value at October 1, 2016	$	620,850	$	661,812	$	1,282,662
Gross goodwill	$	1,665,960	$	996,436	$	2,662,396
Accumulated impairment		(1,045,110)		(334,624)		(1,379,734)
Carrying value at October 1, 2016	$	620,850	$	661,812	$	1,282,662

As discussed in Note 3, the Company classified goodwill related to the TS reporting units as held for sale as of October 1, 2016, and July 2, 2016. During the first quarter of fiscal 2017, in connection with the planned sale of the TS business, the Company evaluated goodwill related to TS for impairment and concluded that goodwill related to the TS business was recoverable as the negotiated TS selling price was in excess of its carrying value.

Intangible Assets

The following table presents the Company’s acquired intangible assets at October 1, 2016, and July 2, 2016, respectively.


	October 1, 2016						July 2, 2016
	Acquired		Accumulated		Net Book		Acquired		Accumulated		Net Book
	Amount		Amortization		Value		Amount		Amortization		Value
	(Thousands)
Customer related	$	210,466	$	(149,278)	$	61,188	$	211,169	$	(142,994)	$	68,175
Trade name		3,773		(1,537)		2,236		4,875		(2,731)		2,144
Other		14,884		(5,914)		8,970		12,356		(4,278)		8,078
	$	229,123	$	(156,729)	$	72,394	$	228,400	$	(150,003)	$	78,397

As discussed in Note 3, the Company classified intangible assets and amortization expense related to the TS business as held for sale as of October 1, 2016, and July 2, 2016.

Intangible asset amortization expense was $6.4 million and $6.9 million for the first quarters of fiscal 2017 and 2016, respectively. Of these amounts, amortization expense from continuing operations totaled $1.9 million and $2.4 million for the first quarters of fiscal 2017 and 2016, respectively. As a result of the TS business being classified as held for sale as of October 1, 2016, the amortization of TS specific intangible assets has ceased. Intangible assets from continuing operations have a weighted average remaining useful life of approximately 3 years. The following table presents the estimated future amortization expense from continuing operations for the remainder of fiscal 2017, the next five fiscal years and thereafter (in thousands):


Fiscal Year
Remainder of fiscal 2017		6,592
2018		5,488
2019		4,071
2020		2,283
2021		848
Thereafter		1,541
Total	$	20,823

- 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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