Goodwill and Intangible Assets

12 Months Ended

Jun. 29, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company’s reporting units for goodwill impairment testing are:


•	LED Products


•	Lighting Products


•	Power and RF Products

As of the first day of the fourth quarter of fiscal 2014, the Company performed a qualitative goodwill impairment assessment on each reporting unit. The Company determined that the fair value of each reporting unit was more likely than not greater than its carrying value, and therefore a quantitative goodwill impairment assessment was not required. Goodwill by reporting unit as of June 29, 2014 and June 30, 2013 was as follows (in thousands):



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

Intangible Assets

The following table presents the components of intangible assets, net (in thousands):



	June 29, 2014							June 30, 2013
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Intangible assets with finite lives:
Customer relationships		$137,440		($66,970	)		$70,470		$137,440		($59,611	)		$77,829
Developed technology	162,760		(72,921		)	89,839		162,760		(53,476		)	109,284
Non-compete agreements	10,244		(5,997		)	4,247		10,244		(4,037		)	6,207
Trade names, finite-lived	520		(516		)	4		520		(493		)	27
Patent and licensing rights	134,607		(42,424		)	92,183		116,147		(34,849		)	81,298
Total intangible assets with finite lives	445,571		(188,828		)	256,743		427,111		(152,466		)	274,645
Trade names, indefinite-lived	79,680					79,680		82,880					82,880
Total intangible assets		$525,251		($188,828	)		$336,423		$509,991		($152,466	)		$357,525

Total amortization of finite-lived intangible assets was $37.7 million, $37.8 million and $32.1 million for the years ended June 29, 2014, June 30, 2013 and June 24, 2012, respectively.

As of the first day of the fourth quarter of fiscal 2014, the Company performed a qualitative impairment assessment on each of the Company’s indefinite-lived trade names. The Company determined that, with the exception of the Ruud Lighting trade name, the fair value of each indefinite-lived trade name was more likely than not greater than its carrying value and therefore a quantitative impairment assessment was not required. With respect to the Ruud Lighting trade name, the Company determined that this trade name has a finite useful life and therefore performed a quantitative impairment assessment. As a result of the quantitative impairment assessment, the Company recognized a $3.2 million impairment of the Ruud Lighting trade name.

The Company invested $20.2 million, $20.9 million and $17.2 million for the years ended June 29, 2014, June 30, 2013 and June 24, 2012, respectively, for patent and licensing rights. For the fiscal years ended June 29, 2014, June 30, 2013 and June 24, 2012, the Company recognized $1.4 million, $1.6 million and $0.8 million, respectively, in impairment charges related to its patent portfolio.

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



Fiscal Year Ending
June 28, 2015		$34,390
June 26, 2016	34,099
June 25, 2017	32,106
June 24, 2018	30,927
June 30, 2019	18,390
Thereafter	106,831
Total future amortization expense		$256,743

- 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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