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Acquired Developed Technology and Other Intangibles
6 Months Ended
Dec. 27, 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, customer relationships and other intangibles (in millions):

 

 

 

Gross

 

 

 

 

 

 

 

Carrying

 

Accumulated

 

 

 

As of December 27, 2014

 

Amount

 

Amortization

 

Net

 

Acquired developed technology

 

$

539.0

 

$

(454.5

)

$

84.5

 

Customer relationships

 

197.2

 

(144.7

)

52.5

 

Other

 

22.7

 

(21.3

)

1.4

 

Total intangibles subject to amortization

 

758.9

 

(620.5

)

138.4

 

In-process research and development intangibles

 

3.5

 

 

3.5

 

Total intangibles

 

$

762.4

 

$

(620.5

)

$

141.9

 

 

 

 

Gross

 

 

 

 

 

 

 

Carrying

 

Accumulated

 

 

 

As of June 28, 2014

 

Amount

 

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

 

 

During the three months ended September 27, 2014, the Company completed its in-process research and development (“IPR&D) project related to the fiscal 2014 acquisition of Network Instruments. Accordingly, $1.7 million was transferred from indefinite life intangible assets to acquired developed technology intangible assets and began amortizing over its useful life of fifty-two months.

 

During the three months ended December 27, 2014, the Company recorded a $1.9 million IPR&D impairment charge for an ongoing project related to the fiscal 2014 acquisition of Trendium in accordance with the authoritative accounting guidance. The charge was recorded to Research and development expense in the Consolidated Statement of Operations for the three and six months ended December 27, 2014.

 

During the three and six months ended December 27, 2014, the Company recorded $16.1 million and $31.2 million, respectively, of amortization expense relating to acquired developed technology, customer relationships and other intangibles.

 

During the three and six months ended December 28, 2013, the Company recorded $12.7 million and $26.8 million, respectively, of amortization expense relating to acquired developed technology, customer relationships and other intangibles.

 

Based on the carrying amount of acquired developed technology, customer relationships and other intangibles as of December 27, 2014, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions):

 

Fiscal Years 

 

 

 

Remainder of 2015

 

$

28.0 

 

2016

 

38.2 

 

2017

 

35.1 

 

2018

 

22.5 

 

2019

 

10.9 

 

Thereafter

 

3.7 

 

Total amortization

 

$

138.4 

 

 

The acquired developed technology, customer relationships and other intangibles balance are adjusted quarterly to record the effect of currency translation adjustments.