3Ware 2005 Annual Report Download - page 77

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APPLIED MICRO CIRCUITS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Goodwill and purchased intangible assets:
Goodwill and other acquisition-related intangibles were as follows (in thousands):
March 31, 2005 March 31, 2004
Gross
Accumulated
Amortization
and
Impairments Net Gross
Accumulated
Amortization
and
Impairments Net
Goodwill ................... $4,401,662 $(3,974,186) $427,476 $4,166,727 $(3,974,186) $192,541
Developed technology ........ 413,500 (331,031) 82,469 325,500 (287,651) 37,849
Backlog/customer
relationships .............. 3,600 (3,282) 318 1,400 (489) 911
Patents/core technology rights/
tradename ................ 59,200 (34,949) 24,251 32,400 (23,508) 8,892
$4,877,962 $(4,343,448) $534,514 $4,526,027 $(4,285,834) $240,193
The changes in the carrying amount of goodwill for the three years ending March 31, are as follows (in
thousands):
2005 2004 2003
Beginning Balance .............................................. $192,541 $ 72,499 $ 358,014
Goodwill related to acquisitions (Note 4) ............................. 238,279 123,826 —
Acquired lease liability adjustment .................................. (3,344) — —
Reclassification of assembled workforce ............................. — — 6,304
Cumulative effect of accounting change ............................. — — (102,229)
Impairment losses ............................................... — — (186,389)
Adjustment for deferred tax assets related to acquired companies .......... — (3,784) (3,201)
Ending Balance ................................................. $427,476 $192,541 $ 72,499
The estimated future amortization expense of purchased intangible assets charged to cost of sales and
operating expenses as of March 31, 2005, is as follows (in thousands):
Cost of
Sales
Operating
Expenses Total
Fiscal year 2006 .................................................. $17,644 $ 4,588 $ 22,232
Fiscal year 2007 .................................................. 14,500 4,430 18,930
Fiscal year 2008 .................................................. 14,500 4,430 18,930
Fiscal year 2009 .................................................. 13,950 4,429 18,379
Fiscal year 2010 .................................................. 10,500 3,169 13,669
Thereafter ....................................................... 11,375 3,523 14,898
Total ....................................................... $82,469 $24,569 $107,038
F-15