Goodwill and Intangible Assets

Note 17: Goodwill and Intangible Assets

Goodwill

There were no significant changes in the goodwill balance during the twelve months ended June 30, 2013. Of the $1.5 billion goodwill balance, $61 million is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law.

Intangible Assets

The following table provides the Company’s intangible assets as of June 30, 2013 (in thousands, except years):


	Gross		Accumulated Amortization			Net		Weighted- Average Useful Life (years)
Customer relationships	$	624,686	$	(103,519	)	$	521,167		9.01
Existing technology		653,628		(139,894	)		513,734		6.97
Patents		32,053		(22,036	)		10,017		6.09
Backlog		10,000		(10,000	)		—		1.00
Other intangible assets		35,216		(34,889	)		327		4.10

Intangible assets subject to amortization		1,355,583		(310,338	)		1,045,245
In process research and development		20,000					20,000
Development rights		9,100					9,100

Intangible assets not subject to amortization		29,100					29,100

Total intangible assets	$	1,384,683	$	(310,338	)	$	1,074,345

The following table provides details of the Company’s intangible assets as of June 24, 2012 (in thousands, except years):


	Gross		Accumulated Amortization			Net		Weighted- Average Useful Life (years)
Customer relationships	$	615,411	$	(32,041	)	$	583,370		9.04
Existing technology		642,311		(48,378	)		593,933		6.97
Patents		30,870		(17,525	)		13,345		6.05
Backlog		10,000		(548	)		9,452		1.00
Other intangible assets		35,216		(33,989	)		1,227		4.10

Intangible assets subject to amortization		1,333,808		(132,481	)		1,201,327
In process research and development		30,000					30,000
Development rights		9,100					9,100

Intangible assets not subject to amortization		39,100					39,100

Total intangible assets	$	1,372,908	$	(132,481	)	$	1,240,427

The Company recognized $177.6 million, $26.9 million, and $21.0 million, in intangible asset amortization expense during fiscal years 2013, 2012, and 2011, respectively.

The estimated future amortization expense of intangible assets, excluding those with indefinite lives, as of June 30, 2013 was as follows (in thousands):


Fiscal Year	Amount
2014	$	160,887
2015		157,310
2016		155,093
2017		153,352
2018		152,100
Thereafter		266,503

	$	1,045,245

- 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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