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Goodwill and Intangible Assets
9 Months Ended
Oct. 27, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
Changes in the carrying amount of goodwill by applicable reporting unit were as follows:
(in thousands)
Signal Integrity
 
Wireless and Sensing
 
Protection
 
Total
Balance at January 27, 2019
$
274,085

 
$
72,128

 
$
4,928

 
$
351,141

Additions

 

 

 

Balance at October 27, 2019
$
274,085

 
$
72,128

 
$
4,928

 
$
351,141

(in thousands)
Signal Integrity
 
Wireless and Sensing
 
Protection
 
Total
Balance at January 28, 2018
$
274,085

 
$
67,812

 
$

 
$
341,897

Additions (1) (2)

 
8,500

 
4,778

 
13,278

Balance at October 28, 2018
$
274,085

 
$
76,312

 
$
4,778

 
$
355,175

(1) On August 17, 2018, the Company, through its subsidiary Semtech (International) AG, a Swiss corporation, entered into the TrackNet Acquisition for approximately $8.5 million, with the entire purchase price preliminarily attributed to goodwill as of October 28, 2018. During the fourth quarter of fiscal year 2019, the Company finalized the purchase price allocation for the TrackNet Acquisition, which resulted in $4.3 million of the purchase price attributed to goodwill.
(2) On May 2, 2018, the Company acquired substantially all of the assets of ICI for an aggregate purchase price of approximately $7.4 million, of which $4.8 million was preliminarily attributed to goodwill as of October 28, 2018. During the fourth quarter of fiscal year 2019, the Company finalized the purchase price allocation for the acquisition of ICI, which resulted in $4.9 million of the purchase price attributed to goodwill.
The reporting units are the same as the operating segments, which are part of a single reportable segment (see Note 13).
Goodwill is tested for impairment at the reporting unit level during the fourth quarter of each fiscal year. In addition to its annual review, the Company performs a test of impairment when indicators of impairment are present. As of October 27, 2019, there was no indication of impairment of the Company's goodwill balances.
Purchased Intangibles
The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions, which continue to be amortized:
 
 
 
October 27, 2019
 
January 27, 2019
(in thousands)
Estimated
Useful Life
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
Core technologies
5-8 years
 
$
83,088

 
$
(62,674
)
 
$
20,414

 
$
167,930

 
$
(136,544
)
 
$
31,386

Customer relationships
3-10 years
 
6,000

 
(4,978
)
 
1,022

 
34,031

 
(31,159
)
 
2,872

Total finite-lived intangible assets
 
 
$
89,088

 
$
(67,652
)
 
$
21,436

 
$
201,961

 
$
(167,703
)
 
$
34,258

 
Amortization expense of finite-lived intangible assets recorded in the Statements of Income for each period was as follows:
 
Three Months Ended
 
Nine Months Ended
(in thousands)
October 27, 2019
 
October 28, 2018
 
October 27, 2019
 
October 28, 2018
Core technologies
$
3,337

 
$
5,047

 
$
10,971

 
$
15,622

Customer relationships
433

 
1,433

 
1,850

 
4,299

Total amortization expense
$
3,770

 
$
6,480

 
$
12,821

 
$
19,921


Future amortization expense of finite-lived intangible assets is expected as follows:
(in thousands)
 
 
 
 
 
Fiscal Year Ending:
Core Technologies
 
Customer Relationships
 
Total
2020 (remaining three months)
$
3,267

 
$
433

 
$
3,700

2021
7,389

 
589

 
7,978

2022
4,655

 

 
4,655

2023
3,714

 

 
3,714

2024
1,389

 

 
1,389

Thereafter

 

 

Total expected amortization expense
$
20,414

 
$
1,022

 
$
21,436


The following table sets forth the Company’s indefinite-lived intangible assets resulting from additions to in-process research and development:
(in thousands)
Net Carrying Value
Value at January 27, 2019
$
2,300

In-process research and development through acquisitions

Value at October 27, 2019
$
2,300


Indefinite-lived intangible assets are tested for impairment annually on the first day of the fourth quarter or more frequently if events or changes in circumstances (each, a “triggering event”) would more likely than not reduce the carrying value of the asset below its fair value, calculated as the future discounted cash flows that asset is expected to generate. Management did not identify any triggering events during the nine months ended October 27, 2019, that would require an interim impairment analysis.