Note 10. Acquired Developed Technology and Other Intangibles

The following tables present details of the Company’s acquired developed technology, customer relationships and other intangibles (in millions):



As of July 2, 2016	Gross Carrying Amount		Accumulated Amortization			Net
Acquired developed technology	$	369.3	$	(337.3	)	$	32.0
Customer relationships	95.6		(68.0		)	27.6
Other (1)	10.8		(10.5		)	0.3
Total intangibles	$	475.7	$	(415.8	)	$	59.9



As of June 27, 2015	Gross Carrying Amount		Accumulated Amortization			Net
Acquired developed technology	$	418.9	$	(373.6	)	$	45.3
Customer relationships	178.7		(135.8		)	42.9
Other (1)	19.5		(18.9		)	0.6
Total intangibles subject to amortization	617.1		(528.3		)	88.8
In-process research and development	1.8		—			1.8
Total intangibles	$	618.9	$	(528.3	)	$	90.6


(1)	Other intangibles consist of customer backlog, non-competition agreements, patents, proprietary know-how and trade secrets, trademarks and trade names.

Fiscal 2016

During the first quarter of fiscal 2016, the Company completed its in-process research and development (“IPR&D”) project related to the fiscal 2014 acquisition of Trendium. Accordingly, $1.8 million was transferred from indefinite life intangible assets to acquired developed technology intangible assets with a useful life of thirty-six months.

Prior to conducting step one of the goodwill impairment tests for the SE reporting unit, the Company first evaluated the recoverability of the long-lived assets, including purchased intangible assets. In accordance with authoritative guidance, when indicators of impairment are present, the Company tests long-lived assets (other than goodwill) for recoverability by comparing the carrying value of an asset group, which is the same as the reporting unit, to its net undiscounted cash flows expected to be generated from its use and their eventual disposition over the remaining useful live of the primary asset. The result of the analysis indicated that the estimated undiscounted cash flows exceed the carrying amount of the long-lived asset group, the long-lived asset group is recoverable; therefore, an impairment was not identified.

Fiscal 2015

During fiscal 2015, the Company completed its in-process research and development (“IPR&D) project related to the fiscal 2014 acquisition of Network Instruments. Accordingly, $1.7 million was transferred from indefinite life intangible assets to acquired developed technology intangible assets and the Company began amortizing over its useful life of fifty-two months. Also during fiscal 2015, the Company recorded a $3.6 million IPR&D impairment charge for an ongoing project related to the fiscal 2014 acquisition of Trendium in accordance with the authoritative accounting guidance. The charge was recorded to Research and development (“R&D”) expense in the Consolidated Statements of Operations.

During fiscal 2016, 2015 and 2014, the Company recorded $31.9 million, $51.4 million and $49.6 million, respectively, of amortization related to acquired developed technology and other intangibles. The following table presents details of the Company’s amortization (in millions):



	Years Ended
	July 2, 2016		June 27, 2015		June 28, 2014
Cost of sales	$	17.3	$	31.9	$	34.1
Operating expense	14.6		19.5		15.5
Total	$	31.9	$	51.4	$	49.6

Based on the carrying amount of acquired developed technology, customer relationships and other intangibles as of July 2, 2016, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions):



Fiscal Years
2017	$	28.5
2018	20.4
2019	9.3
2020	1.4
Thereafter	0.3
Total amortization	$	59.9