Acquired Intangibles and Goodwill

9 Months Ended

Mar. 31, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

7. Acquired Intangibles and Goodwill

Acquired Intangibles

The following table summarizes the life, the gross carrying value and the related accumulated amortization of our acquired intangible assets as of March 31, 2018 and June 30, 2017 (in millions):

	Weighted Average Life in Years		March 31, 2018			June 30, 2017
Display driver technology		5.3	$	164.0		$	164.0
Audio and video technology		4.7		118.2			-
Customer relationships		3.6		66.2			48.4
Fingerprint authentication technology		4.0		55.7			63.5
Licensed technology and other		4.3		9.0			1.3
Tradename		7.0		1.7			-
Patents		7.7		4.6			4.8
Backlog		0.5		1.3			-
In-process research and development	Not applicable			3.6			-
Acquired intangibles, gross		4.6		424.3			282.0
Accumulated amortization				(214.9	)		(181.0	)
Acquired intangibles, net			$	209.4		$	101.0

The total amortization expense for the acquired intangible assets was $18.7 million and $14.0 million for the three months ended March 31, 2018 and 2017, respectively, and $62.0 million and $45.2 million for the nine months ended March 31, 2018 and 2017, respectively. During the three months ended March 31, 2018 and 2017, $17.2 million and $11.7 million, respectively, and $53.4 million and $35.9 million for the nine months ended March 31, 2018 and 2017, respectively, of amortization expense was included in our condensed consolidated statements of operations in cost of revenue; the remainder was included in acquired intangibles amortization.

The following table presents expected annual fiscal year aggregate amortization expense as of March 31, 2018 (in millions):

Remainder of 2018	$	20.9
2019		71.7
2020		48.2
2021		35.3
2022		25.8
2023		3.2
Thereafter		0.7
To be determined		3.6
Future amortization	$	209.4

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired. Changes in our goodwill balance for the nine months ended March 31, 2018 were as follows (in millions):

Beginning balance	$	206.8
Acquisition activity		157.3
Post-acquisition adjustments		40.1
Ending balance	$	404.2

- 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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