Intangible Assets and Goodwill

12 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

The following table reflects the components of intangible assets (in thousands):



	June 30, 2013							June 24, 2012
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Intangible assets with finite lives:
Customer relationships		$137,440		($59,611	)		$77,829		$137,440		($51,103	)		$86,337
Developed technology	162,760		(53,476		)	109,284		160,360		(33,141		)	127,219
Non-compete agreements	10,244		(4,037		)	6,207		10,244		(2,077		)	8,167
Trade names, finite-lived	520		(493		)	27		520		(469		)	51
Patent and license rights	116,147		(34,849		)	81,298		97,812		(28,791		)	69,021
Total intangible assets with finite lives		$427,111		($152,466	)		$274,645		$406,376		($115,581	)		$290,795
In-process research and development, indefinite-lived	—					—		2,400					2,400
Trade names, indefinite-lived	82,880					82,880		82,880					82,880
Total intangible assets		$509,991		($152,466	)		$357,525		$491,656		($115,581	)		$376,075

Total amortization of intangible assets was $37.8 million, $32.1 million and $15.5 million for the years ended June 30, 2013, June 24, 2012 and June 26, 2011, respectively.

The Company invested $20.9 million, $17.2 million and $12.8 million for the years ended June 30, 2013, June 24, 2012 and June 26, 2011, respectively for patent and license rights. For the fiscal years ended June 30, 2013, June 24, 2012 and June 26, 2011, the Company recognized $1.6 million, $0.8 million and $0.5 million, respectively, in impairment charges related to its patent portfolio.

Total future amortization expense of definite-lived intangible assets is estimated to be as follows (in thousands):



Fiscal Year Ending
June 29, 2014		$36,049
June 28, 2015	33,073
June 26, 2016	32,795
June 25, 2017	30,824
June 24, 2018	29,663
Thereafter	112,241
		$274,645

Goodwill

The Company's reporting units for goodwill impairment testing include:


•	LED Products


•	Lighting Products


•	Power and RF Products

As of the first day of the fourth quarter of fiscal 2013, the Company performed a step one quantitative goodwill impairment assessment on each reporting unit. For the step one impairment test, the Company derived each reporting unit's fair value through a combination of the market approach (a guideline transaction method) and the income approach (a discounted cash flow analysis). The Company utilized a discount rate from the capital asset pricing model for the discounted cash flow analysis. Once the reporting unit fair values were calculated, the Company reconciled the reporting units' relative fair values to the Company's market capitalization as of the testing date.

The Company then compared the carrying value of each reporting unit, inclusive of its assigned goodwill, to its fair value. The Company determined that the fair value of each reporting unit exceeded its carrying value, and as a result, step two of the goodwill impairment test was not necessary.

No impairment losses were recognized with respect to goodwill. Goodwill by reporting unit as of June 30, 2013 and June 24, 2012 was as follows (in thousands):



LED Products		Lighting Products		Power and RF Products		Consolidated Total
	$245,857		$337,781		$32,707		$616,345

- 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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