SanDisk 2013 Annual Report Download - page 191

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
amortizable intangible assets and IPR&D assets totaling $83.2 million in the third quarter of fiscal year
2013, which was included in Impairment of acquisition-related intangible assets in the Consolidated
Statements of Operations. The Company will continue to monitor for any events or circumstances that
could indicate whether an impairment of the remaining Pliant acquisition-related intangible assets is
required. The amortization schedule for the remaining Pliant acquisition-related intangible assets has been
adjusted to be fully amortized by the end of fiscal year 2014, based upon the estimated remaining cash
flows.
Acquired IPR&D is accounted for as an indefinite-lived intangible asset. Indefinite-lived intangible
assets are reviewed for impairment at least annually until technological feasibility is achieved or
development is complete. Upon completion of development, the acquired IPR&D is considered an
amortizable finite-lived intangible asset. Amortization expense of technology licenses and patents is
recorded to cost of revenue or R&D based upon the use of the technology. In fiscal year 2012, the
Company discontinued a project related to an IPR&D indefinite-lived intangible asset, which resulted in
an impairment of $0.9 million which was included in Impairment of acquisition-related intangible assets in
the Consolidated Statement of Operations.
Amortization expense of intangible assets totaled $84.3 million, $76.5 million and $65.5 million in
fiscal years 2013, 2012 and 2011, respectively.
The annual expected amortization expense of intangible assets subject to amortization as of
December 29, 2013, is as follows (in thousands):
Acquisition-related Technology Licenses
Intangible Assets and Patents
Fiscal year:
2014 ............................................ $ 83,671 $ 21,231
2015 ............................................ 48,114 20,056
2016 ............................................ 40,544 3,333
2017 ............................................ 24,655 —
Total intangible assets subject to amortization ............. $ 196,984 $ 44,620
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