Goodwill and Intangible Assets

3 Months Ended

Apr. 03, 2016

L. Goodwill and Intangible Assets

The changes in the carrying amount of goodwill by reportable segments for the three months ended April 3, 2016, were as follows:


	Wireless Test			Industrial Automation		System Test			Semiconductor Test			Total
	(in thousands)
Balance at December 31, 2015:
Goodwill	$	361,819		$	214,975	$	158,699		$	260,540		$	996,033
Accumulated impairment losses		(98,897	)		—		(148,183	)		(260,540	)		(507,620	)

		262,922			214,975		10,516			—			488,413
Foreign currency translation adjustment		—			7,458		—			—			7,458

Balance at April 3, 2016:
Goodwill		361,819			222,433		158,699			260,540			1,003,491
Accumulated impairment losses		(98,897	)		—		(148,183	)		(260,540	)		(507,620	)

	$	262,922		$	222,433	$	10,516		$	—		$	495,871

Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet:


	April 3, 2016
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	333,947	$	186,118	$	147,829		6.0 years
Customer relationships		110,658		68,114		42,544		7.9 years
Tradenames and trademarks		53,169		20,468		32,701		9.5 years
Non-compete agreement		320		120		200		4.0 years
Customer backlog		170		170		—		0.3 years

Total intangible assets	$	498,264	$	274,990	$	223,274		6.8 years


	December 31, 2015
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	379,778	$	220,306	$	159,472		6.0 years
Customer relationships		110,340		63,718		46,622		7.9 years
Tradenames and trademarks		52,396		18,879		33,517		9.5 years
Non-compete agreement		320		100		220		4.0 years
Customer backlog		170		170		—		0.3 years

Total intangible assets	$	543,004	$	303,173	$	239,831		6.7 years

Aggregate intangible asset amortization expense was $20.0 million and $13.8 million, respectively, for the three months ended April 3, 2016 and April 5, 2015. Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows:


Year	Amortization Expense
	(in thousands)
2016 (remainder)	$	60,547
2017		71,899
2018		45,160
2019		24,260
2020		10,304
Thereafter		11,104

- 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.

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