7. Goodwill and Purchased Intangible Assets, Net
Goodwill activity is summarized as follows (in millions):
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April 29, 2011 |
$ | 760.3 | ||
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Additions |
143.7 | |||
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Adjustments |
1.2 | |||
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April 27, 2012 |
905.2 | |||
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Additions |
82.9 | |||
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April 26, 2013 |
$ | 988.1 | ||
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We conducted our annual goodwill impairment test during the three months ended April 26, 2013. Based on this analysis, we determined that there was no impairment to goodwill. We will continue to monitor our recorded goodwill for indicators of impairment.
Purchased intangible assets, net are summarized below (in millions):
| April 26, 2013 | April 27, 2012 | |||||||||||||||||||||||
| Gross Assets |
Accumulated Amortization |
Net Assets | Gross Assets |
Accumulated Amortization |
Net Assets | |||||||||||||||||||
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Developed technology |
$ | 312.4 | $ | (134.9 | ) | $ | 177.5 | $ | 282.1 | $ | (79.0 | ) | $ | 203.1 | ||||||||||
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Customer contracts/relationships |
54.7 | (53.1 | ) | 1.6 | 59.4 | (32.7 | ) | 26.7 | ||||||||||||||||
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Trademarks and trade names |
9.9 | (8.9 | ) | 1.0 | 14.7 | (9.7 | ) | 5.0 | ||||||||||||||||
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Covenants not to compete |
2.2 | (1.7 | ) | 0.5 | 2.2 | (1.0 | ) | 1.2 | ||||||||||||||||
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Total purchased intangible assets |
$ | 379.2 | $ | (198.6 | ) | $ | 180.6 | $ | 358.4 | $ | (122.4 | ) | $ | 236.0 | ||||||||||
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Amortization expense for purchased intangible assets is summarized below (in millions):
| Year Ended | Statements of Operations Classifications |
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| April 26, 2013 | April 27, 2012 | April 29, 2011 | ||||||||||||
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Developed technology |
$ | 55.9 | $ | 55.8 | $ | 13.3 | Cost of revenues | |||||||
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Customer contracts/relationships |
25.2 | 28.1 | 3.0 | Operating expenses | ||||||||||
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Trademarks and trade names |
4.0 | 4.2 | 1.2 | Operating expenses | ||||||||||
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Covenants not to compete |
0.7 | 0.9 | 0.2 | Operating expenses | ||||||||||
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| $ | 85.8 | $ | 89.0 | $ | 17.7 | |||||||||
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As of April 26, 2013, future amortization expense related to purchased intangible assets is as follows (in millions):
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Fiscal Year |
Amount | |||
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2014 |
$ | 59.2 | ||
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2015 |
57.8 | |||
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2016 |
53.6 | |||
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2017 |
6.7 | |||
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2018 |
3.3 | |||
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Total |
$ | 180.6 | ||
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