NetApp, Inc. | 2013 | FY | 3


7. Goodwill and Purchased Intangible Assets, Net

Goodwill activity is summarized as follows (in millions):

 

April 29, 2011

   $ 760.3   

Additions

     143.7   

Adjustments

     1.2   
  

 

 

 

April 27, 2012

     905.2   

Additions

     82.9   
  

 

 

 

April 26, 2013

   $ 988.1   
  

 

 

 

We conducted our annual goodwill impairment test during the three months ended April 26, 2013. Based on this analysis, we determined that there was no impairment to goodwill. We will continue to monitor our recorded goodwill for indicators of impairment.

Purchased intangible assets, net are summarized below (in millions):

 

     April 26, 2013      April 27, 2012  
     Gross
Assets
     Accumulated
Amortization
    Net Assets      Gross
Assets
     Accumulated
Amortization
    Net Assets  

Developed technology

   $ 312.4       $ (134.9   $ 177.5       $ 282.1       $ (79.0   $ 203.1   

Customer contracts/relationships

     54.7         (53.1     1.6         59.4         (32.7     26.7   

Trademarks and trade names

     9.9         (8.9     1.0         14.7         (9.7     5.0   

Covenants not to compete

     2.2         (1.7     0.5         2.2         (1.0     1.2   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total purchased intangible assets

   $ 379.2       $ (198.6   $ 180.6       $ 358.4       $ (122.4   $ 236.0   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Amortization expense for purchased intangible assets is summarized below (in millions):

 

     Year Ended      Statements of Operations
Classifications
     April 26, 2013      April 27, 2012      April 29, 2011     

Developed technology

   $ 55.9       $ 55.8       $ 13.3       Cost of revenues

Customer contracts/relationships

     25.2         28.1         3.0       Operating expenses

Trademarks and trade names

     4.0         4.2         1.2       Operating expenses

Covenants not to compete

     0.7         0.9         0.2       Operating expenses
  

 

 

    

 

 

    

 

 

    
   $ 85.8       $ 89.0       $ 17.7      
  

 

 

    

 

 

    

 

 

    

 

As of April 26, 2013, future amortization expense related to purchased intangible assets is as follows (in millions):

 

Fiscal Year

   Amount  

2014

   $ 59.2   

2015

     57.8   

2016

     53.6   

2017

     6.7   

2018

     3.3   
  

 

 

 

Total

   $ 180.6   
  

 

 

 

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