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Goodwill and Intangible Assets | 12 Months Ended
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Jan. 26, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table summarizes goodwill by applicable operating segments:
| Balance as of January 26, 2025 |  | Balance as of January 28, 2024
(in thousands) | Goodwill |  | Accumulated Impairment Losses |  | Carrying Value |  | Goodwill |  | Accumulated Impairment Losses |  | Carrying Value
Signal Integrity | $ | 267,205 |  |  | $ | — |  |  | $ | 267,205 |  |  | $ | 267,205 |  |  | $ | — |  |  | $ | 267,205 |
Analog Mixed Signal and Wireless | 83,101 |  |  | — |  |  | 83,101 |  |  | 83,101 |  |  | — |  |  | 83,101 |
IoT Systems and Connectivity | 945,896 |  |  | (763,111) |  |  | 182,785 |  |  | 946,542 |  |  | (755,621) |  |  | 190,921 |
Total goodwill | $ | 1,296,202 |  |  | $ | (763,111) |  |  | $ | 533,091 |  |  | $ | 1,296,848 |  |  | $ | (755,621) |  |  | $ | 541,227 |
The following table summarizes the change in goodwill by applicable operating segments:
(in thousands) | Signal Integrity |  | Analog Mixed Signal and Wireless |  | IoT Systems and Connectivity |  |  |  |  |  | Total
Balance at January 28, 2024 | $ | 267,205 |  |  | $ | 83,101 |  |  | $ | 190,921 |  |  |  |  |  |  | $ | 541,227 |
Cumulative translation adjustment | — |  |  | — |  |  | (646) |  |  |  |  |  |  | (646) |
Impairment | — |  |  | — |  |  | (7,490) |  |  |  |  |  |  | (7,490) |
Balance at January 26, 2025 | $ | 267,205 |  |  | $ | 83,101 |  |  | $ | 182,785 |  |  |  |  |  |  | $ | 533,091 |
In the first quarter of fiscal year 2025, as a result of organizational restructuring, the Company combined the IoT Systems operating segment and the IoT Connected Services operating segment into the newly formed IoT Systems and Connectivity operating segment. The Company currently has three operating segments—Signal Integrity ("SIP"), Analog Mixed Signal and Wireless ("AMW"), and IoT Systems and Connectivity ("ISC"). As of January 26, 2025 the Company has six reporting units—Signal Integrity, Advanced Protection and Sensing, Wireless, IoT Systems–Modules, IoT Systems–Routers and IoT Connected Services. SIP operating segment includes the Signal Integrity reporting unit, AMW operating segment includes the Advanced Protection and Sensing and Wireless reporting units, and ISC operating segment includes the IoT Systems–Modules, IoT Systems–Routers and IoT Connected Services reporting units. See Note 16, Segment Information, for further discussion of the Company's operating and reportable segments. Goodwill is not amortized, but is tested for impairment at the reporting unit level using either a qualitative or quantitative assessment on an annual basis during the fourth quarter of each fiscal year, and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair market value of the reporting unit. During the fourth quarter of fiscal year 2025, the Company performed its annual goodwill and intangible asset impairment assessment using a qualitative assessment for all of its reporting units, with the exception of IoT Systems–Modules, for which the Company performed a quantitative assessment. Due to a reduction in earnings forecasts associated with this reporting unit, the Company impaired the remaining IoT Systems–Modules goodwill balance of $7.5 million. There was no goodwill impairment for any of the Company's other reporting units. A total of $755.6 million of pre-tax non-cash goodwill impairment charges were recorded for fiscal year 2024 in the Statements of Operations as a result of impairment tests performed. The impairment tests were triggered due to a reduction in earnings forecasts associated with the business acquired from Sierra Wireless, adverse macroeconomic conditions including an elevated interest rate environment, and finalization of the measurement period adjustments. The Company recorded $209.0 million of goodwill impairment for the IoT Connected Services reporting unit, $245.2 million of goodwill impairment for the IoT Systems–Modules reporting unit and $301.4 million of goodwill impairment for the IoT Systems–Routers reporting unit, resulting from quantitative assessments of the reporting units. There was no goodwill impairment for any of the Company's other reporting units. The fair values of these reporting units were determined based on a discounted cash flow model (an income approach) and earnings multiples (a market approach). Significant inputs to the reporting unit fair value measurements included forecasted cash flows, discount rates, terminal growth rates and earnings multiples, which were determined by management estimates and assumptions. The reporting unit fair value measurements are classified as Level 3 in the fair value hierarchy because they involve significant unobservable inputs. In performing the annual goodwill impairment testing during the fourth quarter of fiscal year 2024, the Company also determined that the carrying amounts of our asset groups related to the Sierra Wireless Acquisition may not be recoverable. The Company therefore performed impairment tests on the long-lived assets in each asset group, including definite-lived intangible assets using an undiscounted cash flow analysis, to determine whether the carrying amounts of each asset group related to the Sierra Wireless Acquisition are recoverable. All three asset groups failed the undiscounted cash flow recoverability test and therefore the Company estimated the fair value of the asset group to determine whether any asset impairment was present. The Company’s estimation of the fair value of the long-lived assets included the use of discounted cash flow analyses. Based on these analyses, the Company concluded that the fair values of certain assets were lower than their carrying amounts. During the fourth quarter of fiscal year 2024, the Company recognized intangible impairment charges of $91.8 million for core technologies, $34.8 million for customer relationships and $4.8 million for trade name, reducing the carrying amounts to $28.1 million for core technologies, $4.1 million for customer relationships and $1.5 million for trade name. For fiscal year 2023, prior to and subsequent to the restructuring of the Company's reporting units due to the Sierra Wireless Acquisition, the Company performed a quantitative assessment that demonstrated that the fair value of each of the reporting units was higher than their respective carrying values. No impairment to goodwill was recorded during fiscal year 2023. As a result of the divestiture of the Disposal Group during fiscal year 2023, the Company recorded a reduction to its goodwill of $0.8 million based on the relative fair value of the Disposal Group and the portion of the applicable reporting unit that will be retained. See Note 3, Acquisition and Divestiture, for additional information. Purchased and Other Intangibles The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions, which are amortized over their estimated useful lives:
|  |  | January 26, 2025
(in thousands) | Estimated Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Accumulated Impairment |  | Net Carrying Amount
Core technologies | 1-8 years |  | $ | 154,728 |  |  | $ | (44,014) |  |  | (91,792) |  |  | $ | 18,922 |
Customer relationships | 1-10 years |  | 51,781 |  |  | (13,394) |  |  | (34,777) |  |  | 3,610 |
Trade name | 2-10 years |  | 9,000 |  |  | (3,125) |  |  | (4,816) |  |  | 1,059 |
Capitalized development costs | 3 years |  | 1,368 |  |  | (278) |  |  | — |  |  | 1,090 |
Software licenses | 7 years |  | 200 |  |  | (14) |  |  | — |  |  | 186 |
Total finite-lived intangible assets |  |  | $ | 217,077 |  |  | $ | (60,825) |  |  | $ | (131,385) |  |  | $ | 24,867 |
|  |  | January 28, 2024
(in thousands) | Estimated Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Accumulated Impairment |  | Net Carrying Amount
Core technologies | 1-8 years |  | $ | 154,985 |  |  | $ | (35,130) |  |  | (91,792) |  |  | $ | 28,063 |
Customer relationships | 1-10 years |  | 52,272 |  |  | (13,391) |  |  | (34,777) |  |  | 4,104 |
Trade name | 2-10 years |  | 9,000 |  |  | (2,700) |  |  | (4,816) |  |  | 1,484 |
Total finite-lived intangible assets |  |  | $ | 216,257 |  |  | $ | (51,221) |  |  | $ | (131,385) |  |  | $ | 33,651 |
Amortization expense of finite-lived intangible assets was as follows:
| Fiscal Year Ended
(in thousands) | January 26, 2025 |  | January 28, 2024 |  | January 29, 2023
Core technologies | $ | 9,106 |  |  | $ | 33,716 |  |  | $ | 5,660 |
Customer relationships | 459 |  |  | 12,345 |  |  | 690 |
Trade name | 425 |  |  | 2,568 |  |  | 132 |
Capitalized development costs | 278 |  |  | — |  |  | — |
Software licenses | 14 |  |  | — |  |  | — |
Total amortization expense | $ | 10,282 |  |  | $ | 48,629 |  |  | $ | 6,482 |
Amortization expense of finite-lived intangible assets related to core technologies was recorded in "Amortization of acquired technology" within "Total cost of sales" in the Statements of Operations and amortization expense of finite-lived intangible assets related to customer relationships and trade name was recorded in "Intangible amortization" within "Total operating expenses, net" in the Statements of Operations. Amortization expense of finite-lived intangible assets related to software licenses was recorded in "Cost of sales" in the Statements of Operations and amortization expense of finite-lived intangible assets related to capitalized development costs was recorded in "Product development and engineering" in the Statements of Operations. As of the Acquisition Date, the weighted-average amortization period for the finite-lived intangible assets acquired in the Sierra Wireless Acquisition was 5.3 years, which reflects weighted-average amortization periods of 4.4 years, 7.9 years and 6.2 years for core technologies, customer relationships and trade name, respectively. Future amortization expense of finite-lived intangible assets is expected as follows:
(in thousands) | Core Technologies |  | Customer Relationships |  | Trade Name |  | Capitalized Development Costs |  | Software Licenses |  | Total
Fiscal year 2026 | $ | 8,595 |  |  | $ | 454 |  |  | $ | 133 |  |  | $ | 456 |  |  | $ | 29 |  |  | $ | 9,667 |
Fiscal year 2027 | 3,703 |  |  | 454 |  |  | 133 |  |  | 456 |  |  | 29 |  |  | 4,775 |
Fiscal year 2028 | 3,547 |  |  | 454 |  |  | 133 |  |  | 178 |  |  | 29 |  |  | 4,341 |
Fiscal year 2029 | 3,077 |  |  | 454 |  |  | 133 |  |  | — |  |  | 29 |  |  | 3,693 |
Fiscal year 2030 | — |  |  | 454 |  |  | 133 |  |  | — |  |  | 29 |  |  | 616 |
Thereafter | — |  |  | 1,340 |  |  | 394 |  |  | — |  |  | 41 |  |  | 1,775 |
Total expected amortization expense | $ | 18,922 |  |  | $ | 3,610 |  |  | $ | 1,059 |  |  | $ | 1,090 |  |  | $ | 186 |  |  | $ | 24,867 |
Also in "Other intangible assets, net" in the Balance Sheets, are finite-lived intangible assets to be amortized upon placement in service. The following table sets forth the Company’s finite-lived intangible assets not yet placed in service:
(in thousands) |  | Capitalized Development Costs | 0 | Software Licenses |  | Total
Balance at January 28, 2024 |  | $ | 1,000 |  |  | $ | 915 |  |  | $ | 1,915 |
Additions |  | 2,472 |  |  | 5,425 |  |  | 7,897 |
Placed in service |  | (1,368) |  |  | (200) |  |  | (1,568) |
Balance at January 26, 2025 |  | $ | 2,104 |  |  | $ | 6,140 |  |  | $ | 8,244 |

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