Intangible Assets and Goodwill (Notes)

Intangible Assets and Goodwill

Intangible assets consist of the following (amounts in thousands):



	September 30, 2014
	Gross Amount		Accumulated Amortization			Net Amount
Developed technology	$	559,828	$	(161,145	)	$	398,683
Customer-related	263,805		(147,489		)	116,316
Trademarks and trade names	15,730		(8,323		)	7,407
Backlog	26,302		(25,331		)	971
In-process technology	75,280		—			75,280
Distribution rights	5,585		(5,217		)	368
Covenants not to compete	400		(400		)	—
	$	946,930	$	(347,905	)	$	599,025



	March 31, 2014
	Gross Amount		Accumulated Amortization			Net Amount
Developed technology	$	402,669	$	(117,222	)	$	285,447
Customer-related	195,800		(109,170		)	86,630
Trademarks and trade names	15,730		(7,118		)	8,612
Backlog	24,610		(24,610		)	—
In-process technology	64,396		—			64,396
Distribution rights	5,585		(5,171		)	414
Covenants not to compete	400		(400		)	—
	$	709,190	$	(263,691	)	$	445,499

The Company amortizes intangible assets over their expected useful lives, which range between 1 and 15 years. During the six months ended September 30, 2014, $24.4 million of in-process technology reached technological feasibility and was reclassified as developed technology and began being amortized over its estimated useful life. The following is an expected amortization schedule for the intangible assets for the remainder of fiscal 2015 through fiscal 2019, absent any future acquisitions or impairment charges (amounts in thousands):



Year ending March 31,	Projected Amortization Expense
2015	$99,063
2016	150,298
2017	92,227
2018	73,926
2019	65,650

Amortization expense attributed to intangible assets was $46.5 million and $84.2 million for the three and six months ended September 30, 2014, respectively. Amortization expense attributed to intangible assets was $25.1 million and $54.0 million for the three and six months ended September 30, 2013, respectively. In the three and six months ended September 30, 2014, approximately $1.0 million and $2.0 million was charged to cost of sales, respectively, and approximately $45.5 million and $82.2 million was charged to operating expenses, respectively. In the three months and six months ended September 30, 2013, approximately $1.3 million and $2.5 million was charged to cost of sales, respectively, and approximately $23.8 million and $51.5 million was charged to operating expenses, respectively. The Company recognized impairment charges of $0.2 million and $0.6 million in the three and six months ended September 30, 2014, respectively. The Company recognized impairment charges of $0.4 million in the three and six months ended September 30, 2013.

Goodwill activity for the six months ended September 30, 2014 was as follows (amounts in thousands):



	Semiconductor Products Reporting Unit			Technology Licensing Reporting Unit
Balance at March 31, 2014	$	256,897		$	19,200
Additions due to the acquisition of Supertex	132,508			—
Additions due to acquisition of controlling interest in ISSC	152,243			—
Adjustments due to other acquisitions	625			—
Foreign currency translation adjustments	(3,508		)	—
Balance at September 30, 2014	$	538,765		$	19,200

At September 30, 2014, $538.8 million of goodwill was recorded in the Company's semiconductor products reporting unit and $19.2 million was recorded in the Company's technology licensing reporting unit. At March 31, 2014, the Company applied a qualitative goodwill impairment screen to its two reporting units, concluding it was not more likely than not that goodwill was impaired. Through September 30, 2014, the Company had never recorded an impairment charge against its goodwill balance.

- 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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