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) |
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Customer relationships |
$ | 624,686 | $ | (103,519 | ) | $ | 521,167 | 9.01 | ||||||||
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Existing technology |
653,628 | (139,894 | ) | 513,734 | 6.97 | |||||||||||
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Patents |
32,053 | (22,036 | ) | 10,017 | 6.09 | |||||||||||
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Backlog |
10,000 | (10,000 | ) | — | 1.00 | |||||||||||
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Other intangible assets |
35,216 | (34,889 | ) | 327 | 4.10 | |||||||||||
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Intangible assets subject to amortization |
1,355,583 | (310,338 | ) | 1,045,245 | ||||||||||||
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In process research and development |
20,000 | 20,000 | ||||||||||||||
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Development rights |
9,100 | 9,100 | ||||||||||||||
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Intangible assets not subject to amortization |
29,100 | 29,100 | ||||||||||||||
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Total intangible assets |
$ | 1,384,683 | $ | (310,338 | ) | $ | 1,074,345 | |||||||||
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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) |
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Customer relationships |
$ | 615,411 | $ | (32,041 | ) | $ | 583,370 | 9.04 | ||||||||
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Existing technology |
642,311 | (48,378 | ) | 593,933 | 6.97 | |||||||||||
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Patents |
30,870 | (17,525 | ) | 13,345 | 6.05 | |||||||||||
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Backlog |
10,000 | (548 | ) | 9,452 | 1.00 | |||||||||||
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Other intangible assets |
35,216 | (33,989 | ) | 1,227 | 4.10 | |||||||||||
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Intangible assets subject to amortization |
1,333,808 | (132,481 | ) | 1,201,327 | ||||||||||||
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In process research and development |
30,000 | 30,000 | ||||||||||||||
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Development rights |
9,100 | 9,100 | ||||||||||||||
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Intangible assets not subject to amortization |
39,100 | 39,100 | ||||||||||||||
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Total intangible assets |
$ | 1,372,908 | $ | (132,481 | ) | $ | 1,240,427 | |||||||||
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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):
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Fiscal Year |
Amount | |||
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2014 |
$ | 160,887 | ||
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2015 |
157,310 | |||
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2016 |
155,093 | |||
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2017 |
153,352 | |||
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2018 |
152,100 | |||
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Thereafter |
266,503 | |||
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| $ | 1,045,245 | |||
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