Goodwill and intangible assets

12 Months Ended

Jun. 27, 2015

6. Goodwill and intangible assets

The following table presents the change in goodwill balances by reportable segment for fiscal year 2015. All of the accumulated impairment was recognized in fiscal 2009.


	Electronics		Technology
	Marketing		Solutions		Total
	(Thousands)
Gross goodwill	$	1,713,567	$	1,014,635	$	2,728,202
Accumulated impairment		(1,045,110)		(334,624)		(1,379,734)
Carrying value at June 28, 2014		668,457		680,011		1,348,468
Additions		—		—		—
Adjustments		561		7		568
Foreign currency translation		(29,912)		(40,368)		(70,280)
Carrying value at June 27, 2015	$	639,106	$	639,650	$	1,278,756
Gross goodwill	$	1,684,216	$	974,274	$	2,658,490
Accumulated impairment		(1,045,110)		(334,624)		(1,379,734)
Carrying value at June 27, 2015	$	639,106	$	639,650	$	1,278,756

Goodwill adjustments represent the net purchase accounting adjustments for acquisitions during the related measurement periods.

Based upon the Company’s annual impairment tests performed in the fourth quarters of fiscal 2015, 2014 and 2013, there was no impairment of goodwill in the respective fiscal years. The goodwill impairment testing requirements and related assumptions used are described further in Note 1.

The following table presents the Company’s acquired identifiable intangible assets:


	June 27, 2015						June 28, 2014
	Acquired		Accumulated		Net Book		Acquired		Accumulated		Net Book
	Amount		Amortization		Value		Amount		Amortization		Value
	(Thousands)
Customer related	$	276,921	$	(190,593)	$	86,328	$	319,496	$	(155,604)	$	163,892
Trade name		6,240		(3,792)		2,448		5,993		(1,555)		4,438
Other		12,309		(1,354)		10,955		18,833		(2,855)		15,978
	$	295,470	$	(195,739)	$	99,731	$	344,322	$	(160,014)	$	184,308

Intangible asset amortization expense was $51.7 million, $44.7 million and $32.3 million for fiscal 2015, 2014 and 2013 respectively. Included in fiscal 2015 amortization expense was $8.5 million of accelerated amortization for the reduction in useful lives of certain intangible assets as a result of restructuring actions discussed further in Note 17. Intangible assets have a weighted average remaining life of approximately 5 years as of June 27, 2015. The following table presents the estimated future amortization expense for the next five fiscal years and thereafter (in thousands):


Fiscal Year
2016		28,332
2017		23,562
2018		15,230
2019		11,579
2020		9,776
Thereafter		11,252
Total	$	99,731

- 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.

+ References + Details