LAM RESEARCH CORP | 2013 | FY | 3


Note 17: Goodwill and Intangible Assets

Goodwill

There were no significant changes in the goodwill balance during the twelve months ended June 30, 2013. Of the $1.5 billion goodwill balance, $61 million is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law.

 

Intangible Assets

The following table provides the Company’s intangible assets as of June 30, 2013 (in thousands, except years):

 

    Gross     Accumulated
Amortization
    Net     Weighted-
Average Useful
Life (years)
 

Customer relationships

  $ 624,686      $ (103,519   $ 521,167        9.01   

Existing technology

    653,628        (139,894     513,734        6.97   

Patents

    32,053        (22,036     10,017        6.09   

Backlog

    10,000        (10,000     —          1.00   

Other intangible assets

    35,216        (34,889     327        4.10   
 

 

 

   

 

 

   

 

 

   

Intangible assets subject to amortization

    1,355,583        (310,338     1,045,245     

In process research and development

    20,000          20,000     

Development rights

    9,100          9,100     
 

 

 

     

 

 

   

Intangible assets not subject to amortization

    29,100          29,100     
 

 

 

   

 

 

   

 

 

   

Total intangible assets

  $ 1,384,683      $ (310,338   $ 1,074,345     
 

 

 

   

 

 

   

 

 

   

The following table provides details of the Company’s intangible assets as of June 24, 2012 (in thousands, except years):

 

    Gross     Accumulated
Amortization
    Net     Weighted-
Average Useful
Life (years)
 

Customer relationships

  $ 615,411      $ (32,041   $ 583,370        9.04   

Existing technology

    642,311        (48,378     593,933        6.97   

Patents

    30,870        (17,525     13,345        6.05   

Backlog

    10,000        (548     9,452        1.00   

Other intangible assets

    35,216        (33,989     1,227        4.10   
 

 

 

   

 

 

   

 

 

   

Intangible assets subject to amortization

    1,333,808        (132,481     1,201,327     

In process research and development

    30,000          30,000     

Development rights

    9,100          9,100     
 

 

 

     

 

 

   

Intangible assets not subject to amortization

    39,100          39,100     
 

 

 

   

 

 

   

 

 

   

Total intangible assets

  $ 1,372,908      $ (132,481   $ 1,240,427     
 

 

 

   

 

 

   

 

 

   

The Company recognized $177.6 million, $26.9 million, and $21.0 million, in intangible asset amortization expense during fiscal years 2013, 2012, and 2011, respectively.

The estimated future amortization expense of intangible assets, excluding those with indefinite lives, as of June 30, 2013 was as follows (in thousands):

 

Fiscal Year

   Amount  

2014

   $ 160,887   

2015

     157,310   

2016

     155,093   

2017

     153,352   

2018

     152,100   

Thereafter

     266,503   
  

 

 

 
   $ 1,045,245   
  

 

 

 

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