Adaptec 2006 Annual Report Download - page 71

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Table of Contents
The components of property and equipment, net are as follows:
December 31, 2006 (in thousands) Gross
Accumulated
Amortization Net
Machinery and equipment $ 193,611 $ (177,780) $ 15,831
Leasehold improvements 14,384 (11,811) 2,573
Furniture and fixtures 14,527 (14,027) 500
Total $ 222,522 $ (203,618) $ 18,904
December 31, 2005 (in thousands) Gross
Accumulated
Amortization Net
Machinery and equipment $ 177,596 $ (168,294) $ 9,302
Leasehold improvements 12,620 (11,134) 1,486
Furniture and fixtures 14,049 (13,856) 193
Total $ 204,265 $ (193,284) $ 10,981
Goodwill. Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible
assets acquired. The Company performs a two-step process on an annual basis, or more frequently if necessary, to determine 1) whether the fair value of the
relevant reporting unit exceeds carrying value and 2) the amount of an impairment loss, if any. The Company completed this process in December 2006, 2005
and 2004 and determined that there was no impairment to goodwill.
Intangible assets, net. Intangible assets, net, consist of intangible assets acquired through business combinations (See Note 3. Business Combinations), which are
amortized over their estimated useful lives ranging from 4 to 10 years or have indefinite lives, and purchased developed technology assets that are amortized over
their economic lives, which are normally three years. The components of intangible assets, net are as follows:
December 31, 2006 (in thousands) Gross
Accumulated
Amortization Net
Estimated
life
Backlog $ 4,000 $ (4,000) $ — < 1 year
Core technology 129,700 (14,473) 115,227 8 years
Customer Relationships 66,600 (7,242) 59,358 8 years
Existing technology 46,000 (7,667) 38,333 4 years
Trademarks 3,600 — 3,600 indefinite
Developed technology assets 14,619 (7,508) 7,111 3 years
Total $ 264,519 $ (40,890) $ 223,629
December 31, 2005 (in thousands) Gross
Accumulated
Amortization Net
Estimated
life
Developed technology assets $ 18,881 $ (13,306) $ 5,575 3 years
69
Source: PMC SIERRA INC, 10-K, March 01, 2007 Powered by Morningstar® Document Research℠