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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Note 5: Goodwill and Intangible Assets Goodwill Goodwill is tested for impairment at the reporting unit level which is one level below the Company's operating segments. During the first step of the Company's annual impairment analysis during the fourth quarters of 2016 and 2015, the Company determined that the carrying amount of the Company's goodwill for all of its reporting units was recoverable and no step 2 tests were required for any reporting unit. The Company uses the income approach, based on estimated future cash flows, to perform the goodwill impairment test. These estimates include assumptions about future conditions such as future revenues, gross profits, operating expenses, and industry trends. The Company considers other valuation methods, such as the cost approach or market approach, if it determines that these methods provide a more representative approximation of fair value. The material assumptions used for the income approach for periods when no impairment was necessary included projected net cash flows, a weighted-average discount rate of approximately 10.5%, and a weighted-average long-term growth rate of 3%. The Company considered historical rates and current market conditions when determining the discount and growth rates to use in the Company's analysis. As noted above, there were no impairment charges as a result of the annual impairment analysis in 2016. During the Company's annual impairment analysis in the fourth quarter of 2014, the Company determined that the fair values of certain of its reporting units were less than the carrying value. As a result of the 2014 impairment analysis, the Company recognized a goodwill impairment charge of $8.7 million relating to one of its reporting units in the Analog Solutions Group operating segment. The following table summarizes goodwill by relevant reportable segment as of December 31, 2016 and December 31, 2015 (in millions):
|  | Balance as of December 31, 2016 |  | Balance as of December 31, 2015
|  | Goodwill |  | Accumulated Impairment Losses |  | Carrying Value |  | Goodwill |  | Accumulated Impairment Losses |  | Carrying Value
Operating Segment |  |  |  |  |  |  |  |  |  |  |  |
Analog Solutions Group |  | $ | 836.7 |  |  | $ | (418.9 | ) |  | $ | 417.8 |  |  | $ | 546.7 |  |  | $ | (418.9 | ) |  | $ | 127.8 |
Image Sensor Group |  | 96.8 |  |  | — |  |  | 96.8 |  |  | 95.4 |  |  | — |  |  | 95.4 |
Power Solutions Group |  | 438.7 |  |  | (28.6 | ) |  | 410.1 |  |  | 76.0 |  |  | (28.6 | ) |  | 47.4 |
Total |  | $ | 1,372.2 |  |  | $ | (447.5 | ) |  | $ | 924.7 |  |  | $ | 718.1 |  |  | $ | (447.5 | ) |  | $ | 270.6 |
The following table summarizes the change in goodwill from December 31, 2014 to December 31, 2016 (in millions):
Net balance as of December 31, 2014 |  | $ | 263.8 |
Additions due to business combinations |  | 6.8 |
Net balance as of December 31, 2015 |  | 270.6 |
Additions due to business combination |  | 657.5 |
Divestiture of business |  | (3.4 | )
Net balance as of December 31, 2016 |  | $ | 924.7 |
Intangible Assets Intangible assets, net, were as follows as of December 31, 2016 and December 31, 2015 (in millions):
| December 31, 2016
| Original Cost |  | Accumulated Amortization |  | Accumulated Impairment Losses |  | Carrying Value
Intellectual property | $ | 13.9 |  |  | $ | (11.2 | ) |  | $ | (0.4 | ) |  | $ | 2.3 |
Customer relationships | 549.0 |  |  | (283.3 | ) |  | (19.5 | ) |  | 246.2 |
Patents | 43.7 |  |  | (25.4 | ) |  | (13.7 | ) |  | 4.6 |
Developed technology | 566.9 |  |  | (201.6 | ) |  | (2.6 | ) |  | 362.7 |
Trademarks | 17.2 |  |  | (11.6 | ) |  | (1.1 | ) |  | 4.5 |
Backlog | 3.3 |  |  | (2.4 | ) |  | — |  |  | 0.9 |
Favorable Leases | 1.5 |  |  | (0.4 | ) |  | — |  |  | 1.1 |
IPRD | 145.8 |  |  | — |  |  | (6.0 | ) |  | 139.8 |
Total intangibles | $ | 1,341.3 |  |  | $ | (535.9 | ) |  | $ | (43.3 | ) |  | $ | 762.1 |
| December 31, 2015
| Original Cost |  | Accumulated Amortization |  | Accumulated Impairment Losses |  | Carrying Value
Intellectual property | $ | 13.9 |  |  | $ | (10.6 | ) |  | $ | (0.4 | ) |  | $ | 2.9 |
Customer relationships | 419.8 |  |  | (239.6 | ) |  | (19.8 | ) |  | 160.4 |
Patents | 43.7 |  |  | (23.6 | ) |  | (13.7 | ) |  | 6.4 |
Developed technology | 268.0 |  |  | (152.2 | ) |  | (2.6 | ) |  | 113.2 |
Trademarks | 16.3 |  |  | (9.9 | ) |  | (1.1 | ) |  | 5.3 |
Backlog | 0.3 |  |  | (0.3 | ) |  | — |  |  | — |
IPRD | 41.4 |  |  | — |  |  | (3.8 | ) |  | 37.6 |
Total intangibles | $ | 803.4 |  |  | $ | (436.2 | ) |  | $ | (41.4 | ) |  | $ | 325.8 |
During the year ended December 31, 2016, the Company canceled certain of its previously capitalized IPRD projects under the Image Sensor Group and recorded impairment losses of $2.2 million, included in the “Goodwill and intangible asset impairment” caption on the Company's Consolidated Statements of Operations and Comprehensive Income. Additionally, during the year ended December 31, 2016, the Company completed certain of its IPRD projects, resulting in the reclassification of $21.6 million from IPRD to developed technology. The Company also acquired $547.8 million of intangibles from the acquisition of Fairchild and resulting purchase accounting. As a result of the Company's annual goodwill impairment testing for 2014, it was determined that certain intangible assets belonging to a reporting unit within the Analog Solutions Group were impaired. In connection with this impairment, the Company wrote-off approximately $0.9 million of intangible assets associated with the Analog Solutions Group operating segment. Additionally, during the fourth quarter of 2014, the Company wrote off approximately $4.7 million of other long-lived assets associated with the Analog Solutions Group. See Note 13: ''Fair Value Measurements'' for additional information with respect to the Company's non-recurring fair value measurements. Amortization expense for intangible assets amounted to: $104.8 million for the year ended December 31, 2016, $135.7 million for the year ended December 31, 2015 and $68.4 million for the year ended December 31, 2014. Amortization expense for intangible assets, with the exception of the $139.8 million of IPRD assets that will be amortized once the corresponding projects have been completed, is expected to be as follows over the next five years, and thereafter (in millions):
| Total
2017 | $ | 112.8 |
2018 | 94.5 |
2019 | 87.7 |
2020 | 72.4 |
2021 | 59.7 |
Thereafter | 195.2 |
Total estimated amortization expense | $ | 622.3 |

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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