XML 86 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
Acquired Developed Technology and Other Intangibles
 12 Months Ended
Jun. 28, 2014
Acquired Developed Technology and Other Intangibles  
Acquired Developed Technology and Other Intangibles

 

Note 9. Acquired Developed Technology and Other Intangibles

        The following tables present details of the Company's acquired developed technology and other intangibles (in millions):

As of June 28, 2014
  Gross
Carrying
Amount		   Accumulated
Amortization		   Net  

Acquired developed technology

   $ 548.8   $ (443.1 ) $ 105.7  

Customer relationships

     205.2     (142.3 )   62.9  

Other

     24.2     (22.1 )   2.1  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total intangibles subject to amortization

     778.2     (607.5 )   170.7  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

In-process research and development intangibles

     7.1     —     7.1  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total intangibles

   $ 785.3   $ (607.5 ) $ 177.8  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               


 

As of June 29, 2013
  Gross
Carrying
Amount		   Accumulated
Amortization		   Net  

Acquired developed technology

   $ 546.8   $ (437.4 ) $ 109.4  

Customer relationships

     168.5     (131.5 )   37.0  

Other

     50.3     (47.0 )   3.3  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total intangibles

   $ 765.6   $ (615.9 ) $ 149.7  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        Other intangibles consist of customer backlog, non-competition agreements, patents, proprietary know-how and trade secrets, trademarks and trade names.

        During fiscal 2013, the Company approved a strategic plan to exit the low-speed wireline product line within the NSE segment and incurred a $2.2 million charge for accelerated amortization of related intangible assets, of which $1.8 million and $0.4 million is included in Amortization of acquired technologies and in Amortization of other intangibles in the Consolidated Statement of Operations, respectively. Also during fiscal 2013, the Company approved a plan to exit the concentrated photovoltaic ("CPV") product line within CCOP and incurred a $2.6 million charge for accelerated amortization of related intangibles which is included in Amortization of acquired technologies in the Consolidated Statement of Operations.

        During fiscal 2012, the Company recorded an impairment charge of $18.8 million on the carrying amount of other intangibles related to the Hologram Business in accordance with the authoritative guidance. This charge has been presented in the Consolidated Statements of Operations as a component of Loss from discontinued operations, net of tax. Refer to "Note 19. Discontinued Operations" for more information.

        During fiscal 2014, 2013 and 2012, the Company recorded $59.0 million, $76.0 million and $80.3 million, respectively, of amortization related to acquired developed technology and other intangibles. The following table presents details of the Company's amortization (in millions):

 
   Years Ended  
 
   June 28,
2014		   June 29,
2013		   June 30,
2012		  

Cost of sales

   $ 43.2   $ 63.3   $ 58.6  

Operating expense

     15.8     12.7     21.7  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 59.0   $ 76.0   $ 80.3  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        Based on the carrying amount of acquired developed technology and other intangibles of June 28, 2014, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions):

Fiscal Years
   
  

2015

   $ 59.6  

2016

     38.8  

2017

     35.5  

2018

     22.6  

2019

     10.6  

Thereafter

     3.6  
       
​ ​ ​ ​ ​

Total amortization

   $ 170.7  
       
​ ​ ​ ​ ​
​ ​ ​ ​ ​