LSI CORP | 2013 | FY | 3


Note 9 — Identified Intangible Assets and Goodwill

Identified Intangible Assets

Identified intangible assets were comprised of the following:

 

    December 31,  
    2013     2012  
    Gross
Carrying Amount
    Accumulated
Amortization
    Gross
Carrying Amount
    Accumulated
Amortization
 
    (In thousands)  

Current technology

  $ 930,767      $ (798,588   $ 930,767      $ (751,236

Customer base

    444,439        (344,903     444,439        (304,725

Patent licensing

    312,800        (228,867     312,800        (198,346

Order backlog

    4,500        (4,500     4,500        (4,500

Trade names

    1,800        (1,145     1,800        (680

Workforce

    3,567        (3,567     3,567        (3,567

In-process research and development

    51,300        —          51,300        —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Total identified intangible assets

  $ 1,749,173      $ (1,381,570   $ 1,749,173      $ (1,263,054
 

 

 

   

 

 

   

 

 

   

 

 

 

The following table summarizes amortization expense and the weighted-average lives of identified intangible assets:

 

     Weighted-
Average Lives
     Year Ended December 31,  
        2013      2012      2011  
     (In months)      (In thousands)  

Current technology

     52       $ 47,352       $ 48,736       $ 49,243   

Customer base

     47         40,178         35,316         33,921   

Patent licensing

     36         30,521         30,618         32,125   

Order backlog

     3         —           4,500         —     

Trade names

     55         465         380         50   

Workforce

     72         —           521         596   
     

 

 

    

 

 

    

 

 

 

Total

     48       $ 118,516       $ 120,071       $ 115,935   
     

 

 

    

 

 

    

 

 

 

The estimated annual future amortization expenses related to identified intangible assets as of December 31, 2013 are as follows:

 

     Amortization
Expense
 
     (In thousands)  

Years ending December 31:

  

2014

   $ 119,829   

2015

     112,167   

2016

     91,430   

2017

     32,046   

2018 and thereafter

     12,131   
  

 

 

 

Total

   $ 367,603   
  

 

 

 

 

Goodwill

As of December 31, 2013 and 2012, goodwill was $255.0 million. After completing annual impairment reviews during the fourth quarters of 2013, 2012 and 2011, the Company concluded that goodwill was not impaired in any of these years. As of December 31, 2013 and 2012, accumulated impairment losses were $2.4 billion.


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