Intangible Assets

In November 2011, the Company acquired 100% of the outstanding shares of Nanda. In accounting for the transaction, the Company recorded $10.6 million of specifically identified intangible assets. See Note 3 - "Acquisition, Goodwill Impairment and Long-lived Asset Impairment."

On December 9, 2010, the Company purchased three patents from RTM. The Company paid RTM $0.4 million cash for these patents. The Company also incurred approximately $0.1 million of legal expenses, which were capitalized and included with the cost of the patents acquired. The primary patent expires on March 31, 2018. The Company is amortizing the patents on a straight line basis over a period of 7 years and 3 months (from January 2011 through March 2018).

Intangible assets with an indefinite life are evaluated annually for impairment or whenever events or circumstances occur which indicate that those assets might be impaired.

Finite-lived intangible assets are recorded at cost, less accumulated amortization. Finite-lived intangible assets as of December 29, 2012 and December 31, 2011 consist of the following (in thousands):



	Adjusted cost as of December 29, 2012		Accumulated amortization as of December 29, 2012			Net carrying amount as of December 29, 2012
Developed technology	$	17,700	$	(8,277	)	$	9,423
Customer relationships	9,538		(8,643		)	895
Brand names	1,927		(1,599		)	328
Patented technology	2,252		(1,922		)	330
Trademark	80		(76		)	4
Total	$	31,497	$	(20,517	)	$	10,980



	Adjusted cost as of December 31, 2011		Accumulated amortization as of December 31, 2011			Net carrying amount as of December 31, 2011
Developed technology	$	17,489	$	(5,600	)	$	11,889
Customer relationships	9,517		(8,164		)	1,353
Brand names	1,927		(1,499		)	428
Patented technology	2,252		(1,856		)	396
In-process research and development	316		—			316
Trademark	80		(68		)	12
Total	$	31,581	$	(17,187	)	$	14,394

The amortization of finite-lived intangibles is computed using the straight-line method. Estimated lives of finite-lived intangibles range from two to ten years. During fiscal 2012, the $0.3 million of intangible assets related to in-process research and development as of December 31, 2011 was completed and incorporated in products sold during 2012 and the asset was reclassified to developed technology as of December 29, 2012.

Total amortization expense for the fiscal years ended December 29, 2012, December 31, 2011 and January 1, 2011 was $3.3 million, $1.7 million, and $1.5 million respectively.

In the three month period ended March 31, 2012, the Company recorded a $0.6 million reduction in the fair value of royalty payments to RTM with a corresponding decrease of $0.4 million to goodwill and $0.2 million to intangible assets. There was no other adjustment to intangible assets recorded during the year ended December 29, 2012. See Note 3 for a summary of the acquisition and goodwill impairment analysis.

The estimated future amortization expense as of December 29, 2012 is as follows (in thousands):




Fiscal Years	Amounts
2013	$	3,315
2014	3,024
2015	2,330
2016	1,878
2017	227
Thereafter	206
Total amortization	$	10,980