Intangible Assets

3 Months Ended

May 01, 2011

Intangible Assets

Intangible Assets

Note 9: Intangible Assets

Goodwill - Goodwill is not amortized, but is tested for impairment using a two-step method on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit's carrying amount, including goodwill, to the fair market value of the reporting unit.

The fair value of goodwill is tested for impairment on a non-recurring basis in the accompanying consolidated financial statements using Level 3 inputs. The Company concluded that there were no indicators of impairment as of May 1, 2011.

There were no changes to goodwill during the first three months of fiscal year 2012.

Purchased Intangibles – Purchased intangibles are amortized on a straight-line basis over their estimated useful lives. In-process research and development is recorded at fair value as an indefinite-lived intangible asset until the completion or abandonment of the associated research and development efforts. Upon completion of development, acquired in-process research and development assets are transferred to finite-lived assets and amortized over their useful lives.

Intangible assets consisted of the following:

(in thousands)			Gross Carrying Amount				Accumulated Amortization						Net Book Value
	Estimated Useful Life		May 1, 2011		January 30, 2011		May 1, 2011			January 30, 2011			May 1, 2011		January 30, 2011
Core technologies		2-10 years	$	65,900	$	65,900	$	(15,769	)	$	(14,006	)	$	50,131	$	51,894
In-process research and development		Indefinite		12,370		12,370		—			—			12,370		12,370
Customer relationships		8-10 years		12,130		12,130		(1,910	)		(1,571	)		10,220		10,559
Total other intangibles			$	90,400	$	90,400	$	(17,679	)	$	(15,577	)	$	72,721	$	74,823

Core technologies include $59.9 million of definite lived intangible assets from the December 9, 2009 acquisition of Sierra Monolithics, Inc. ("SMI"). These developed technology intangibles include current optical products, wireless products and microwave products. The Company concluded that the intangibles classified as core technologies were identifiable intangible assets, separate from goodwill, since they were capable of being separated from SMI and sold, transferred or licensed, regardless of whether the Company intended to do so. The fair value of these core technologies was determined using the multi-period excess earnings method. Each product technology was valued separately since each was determined to have a different remaining useful life.

For the three-month periods ended May 1, 2011 and May 2, 2010, amortization expense related to intangible assets was $2.1 million and $2.4 million, respectively.