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Goodwill and Other Intangibles

6 Months Ended

Jun. 28, 2014

Goodwill and Other Intangibles [Abstract]

5 Goodwill and Other Intangibles

The carrying amount of goodwill was $354 million and $350 million at June 28, 2014 and December 31, 2013, respectively. During the six months ended June 28, 2014, the Company's acquisitions increased goodwill by $3 million (Note 4) and the effect of foreign currency translation increased goodwill by $1 million.

The Company's intangible assets included in the consolidated balance sheets are detailed as follows (in thousands):

		June 28, 2014						December 31, 2013
						Weighted-						Weighted-
		Gross				Average		Gross				Average
		Carrying		Accumulated		Amortization		Carrying		Accumulated		Amortization
		Amount		Amortization		Period		Amount		Amortization		Period
Purchased intangibles		$	167,957	$	110,099	10	years	$	167,604	$	105,347	10	years
Capitalized software			353,556		202,588	7	years		340,070		189,415	7	years
Licenses			5,807		3,596	6	years		3,909		3,390	7	years
Patents and other
	intangibles		53,127		27,100	8	years		49,902		24,221	8	years

	Total	$	580,447	$	343,383	8	years	$	561,485	$	322,373	8	years

During the six months ended June 28, 2014, the Company acquired $1 million of purchased intangibles as a result of the acquisition of ULSP (Note 4). During the six months ended June 28, 2014, the effect of foreign currency translation decreased the gross carrying value of intangible assets and accumulated amortization for intangible assets by $4 million and $2 million, respectively. Amortization expense for intangible assets was $12 million and $10 million for the three months ended June 28, 2014 and June 29, 2013, respectively. Amortization expense for intangible assets was $24 million and $20 million for the six months ended June 28, 2014 and June 29, 2013, respectively. The increase in purchased intangibles amortization for both the three and six months ended June 28, 2014 is primarily due to acquisitions made in 2013 and 2014. Amortization expense for intangible assets is estimated to be approximately $49 million per year for each of the next five years. The increase in amortization expense in 2014 and for the next five years is due to amortization associated with acquisitions and capitalized software costs related to the launch of new software product platforms. The net carrying value of the new software platforms were approximately $113 million as of June 28, 2014 and are being amortized over ten years.

- 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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