Note 7 - Goodwill and Intangible Assets

12 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Text Block]

. Goodwill and Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in connection with our acquisitions. We recorded goodwill of $2.8 million related to an acquisition completed in April 2014. In May 2015, we acquired RadioPulse and recorded $14.9 million in goodwill. The goodwill balance as of March 31, 2016 and 2015 reflected changes in the foreign exchange translation rate.

The changes in the carrying amount of goodwill for the years ended March 31, 2016 and 2015 are as follows (in thousands):

	March 31,
	2016			2015
Goodwill	$	41,137		$	38,356
Accumulated impairment losses		(13,192	)		(13,192	)
Accumulated currency translation adjustment		(570	)		-
Net goodwill at beginning of year		27,375			25,164
Goodwill acquired in acquisition		14,887			2,781
Currency translation adjustment		93			(570	)
Net goodwill at end of year	$	42,355		$	27,375

The accumulated impairment losses as of March 31, 2016 and March 31, 2015

were $13.2 million.

Identifiable Intangible Assets

Identified intangible assets consisted of the following as of March 31, 2016 (in thousands):

	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
Developed intellectual property	$	17,309	$	11,639	$	5,670
Customer relationships		13,520		12,961		559
In-process intellectual property		1,188		-		1,188
Contract backlog		7,329		7,329		-
Other intangible assets		1,599		1,409		190
Total identifiable intangible assets	$	40,945	$	33,338	$	7,607

Identified intangible assets consisted of the following as of March 31, 2015 (in thousands):

	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
Developed intellectual property	$	16,304	$	8,084	$	8,220
Customer relationships		13,020		11,290		1,730
Contract backlog		7,155		7,155		-
Other intangible assets		1,608		1,174		434
Total identifiable intangible assets	$	38,087	$	27,703	$	10,384

The following table summarizes the components of the acquired identifiable intangible assets associated with the acquisitions of RadioPulse, the Acquired MCU Business and Zilog, Inc. The fair value of the amortizable intangible assets was determined using the income approach, royalty savings approach and cost approach.

	Acquisition Date			Estimated
	Fair Value		Amortization	Useful Life
	(In thousands)		Method	(In months)

RadioPulse
Developed intellectual property	$	1,005	Accelerated		60
In process intellectual property		1,188	Straight-line		60
Customer relationships		500	Accelerated		36
Contract backlog		174	Straight-line		6
Total for RadioPulse	$	2,867

Acquired MCU Business
Developed intellectual property	$	11,504	Straight-line		60
Customer relationships		6,920	Accelerated		36
Contract backlog		5,155	Straight-line		9
Trade name		421	Straight-line		60
Total for Acquired MCU Business	$	24,000

Zilog
Developed intellectual property	$	4,800	Straight-line		72
Customer relationships		6,100	Accelerated		37
Contract backlog		2,000	Straight-line		12
Trade name		1,100	Straight-line		72
Total for Zilog	$	14,000

The amortization of intangible assets is expected to be approximately $3.2 million, $2.9 million, $904,000, $268,000 and $240,000 in fiscal 2017, 2018, 2019, 2020 and 2021, respectively.

- 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