Goodwill and Purchased and Other Intangibles

3 Months Ended

Mar. 02, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND PURCHASED AND OTHER INTANGIBLES

Goodwill as of March 2, 2018 and December 1, 2017 was $5.84 billion and $5.82 billion, respectively. The increase was due to foreign currency translation adjustments during the three months ended March 2, 2018.

Purchased and other intangible assets subject to amortization as of March 2, 2018 and December 1, 2017 were as follows (in thousands):



	2018							2017
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Purchased technology	$	194,099	$	(90,103	)	$	103,996	$	223,252	$	(110,433	)	$	112,819
Customer contracts and relationships	$	549,227	$	(345,797	)	$	203,430	$	577,484	$	(356,613	)	$	220,871
Trademarks	35,255		(16,247		)	19,008		76,255		(56,094		)	20,161
Acquired rights to use technology	65,285		(50,488		)	14,797		71,130		(54,223		)	16,907
Localization	620		(329		)	291		603		(170		)	433
Other intangibles	38,019		(25,801		)	12,218		38,693		(24,226		)	14,467
Total other intangible assets	$	688,406	$	(438,662	)	$	249,744	$	764,165	$	(491,326	)	$	272,839
Purchased and other intangible assets, net	$	882,505	$	(528,765	)	$	353,740	$	987,417	$	(601,759	)	$	385,658

Amortization expense related to purchased and other intangible assets was $33.9 million and $38.1 million for the three months ended March 2, 2018 and March 3, 2017, respectively. Of these amounts, $16.7 million and $18.7 million were included in cost of sales for the three months ended March 2, 2018 and March 3, 2017, respectively.

During the three months ended March 2, 2018, certain purchased intangibles associated with our acquisitions of Omniture, Inc. and Day Software Holding AG became fully amortized and were removed from the condensed consolidated balance sheets.

As of March 2, 2018, we expect amortization expense in future periods to be as follows (in thousands):



Fiscal Year	Purchased Technology		Other Intangible Assets
Remainder of 2018	$	27,988	$	73,208
2019	34,029		70,156
2020	31,737		39,880
2021	9,125		17,474
2022	1,117		14,467
Thereafter	—		34,559
Total expected amortization expense	$	103,996	$	249,744

- 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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