Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS AND GOODWILL

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INTANGIBLE ASSETS AND GOODWILL
 12 Months Ended
Mar. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 5: INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

Acquired intangible assets are amortized over their estimated useful lives, which generally range from one to eight years. In estimating the useful lives of intangible assets, we considered the following factors:

  • The cash flow projections used to estimate the useful lives of the intangible assets showed a trend of growththat was expected to continue for an extended period of time;
     
  • Our tape automation products, disk systems and software, in particular, have long development cycles; theseproducts have experienced long product life cycles; and
     
  • Our ability to leverage core technology into data protection and big data and archive solutions and, therefore, toextend the lives of these technologies.

Acquired IPR&D is amortized over its estimated useful life once technological feasibility is reached. If IPR&D is determined to not have technological feasibility or is abandoned, we write off the IPR&D in that period.

Following is the weighted average amortization period for our amortizable intangible assets:

Amortization
(Years)
Purchased technology 6.2
Trademarks 6.0
Customer lists 7.2
       All intangible assets 6.6

Intangible amortization within our Consolidated Statements of Operations for the years ended March 31, 2013, 2012 and 2011 follows (in thousands):

      For the year ended March 31,
2013       2012       2011
Purchased technology $ 3,775 $ 7,583 $ 14,862
Trademarks 244 700 810
Non-compete agreements — 32 100
Customer lists 9,280 12,428 12,609
$      13,299 $      20,743 $      28,381

The following table provides a summary of the carrying value of intangible assets (in thousands):

    As of March 31,
2013     2012
Gross
Amount		     Accumulated
Amortization		     Net
Amount		 Gross
Amount		     Accumulated
Amortization		     Net
Amount
Purchased technology $ 180,613 $ (178,168 ) $ 2,445 $ 182,922 $ (176,893 ) $ 6,029
Trademarks 3,900 (3,900 ) — 3,900 (3,656 ) 244
Customer lists 105,719 (95,509 ) 10,210 106,419 (86,929 ) 19,490
In-process research and
       development 158 — 158 349 — 349
$       290,390 $       (277,577 ) $       12,813 $       293,590 $       (267,478 ) $       26,112

The total expected future amortization related to amortizable intangible assets is provided in the table below (in thousands):

Amortization
Fiscal 2014 $        8,896
Fiscal 2015 3,589
Fiscal 2016 138
Fiscal 2017 32
       Total as of March 31, 2013 $ 12,655

We evaluate our long-lived assets for impairment whenever indicators of impairment exist and concluded the carrying amount of our long-lived assets was recoverable and there was no impairment in fiscal 2013, 2012 and 2011. In fiscal 2013 and fiscal 2012, we wrote off $3.2 million and $30.9 million, respectively, of fully amortized intangible assets related to fiscal 2002 and 2003 acquisitions. In-process research and development of $0.2 million reached technological feasibility during fiscal 2013, was transferred to amortizable purchased technology intangible assets and is being amortized over its estimated useful life.

Goodwill

The following provides a summary of the carrying value of goodwill (in thousands):

      Goodwill       Accumulated
Impairment Losses		       Net Amount
Balance March 31, 2011 $ 385,770 $ (339,000 ) $ 46,770
       Pancetera acquisition 8,843 — 8,843
Balance March 31, 2012 and March 31, 2013 $      394,613 $           (339,000 ) $      55,613

Our annual impairment evaluation for goodwill in the fourth quarters of fiscal 2013, 2012 and 2011 did not indicate any impairment of our goodwill in fiscal 2013, 2012 and 2011.