Acquisitions
 12 Months Ended
Jun. 29, 2013
Acquisition [Abstract]  
Acquisitions [Text Block]
ACQUISITIONS

Acquisitions completed in fiscal year 2013

The Company paid $13.8 million in contingent consideration relating to certain acquisitions completed in prior years during the twelve months ended June 29, 2013. Total contingent consideration that could still be paid out in the future related to acquisitions completed in prior years is $10.6 million.

Acquisitions completed in fiscal year 2012

The purchase price allocation for acquisitions completed in fiscal year 2012 is set forth in the table below and reflects various fair value estimates and analysis, including work performed by third-party valuation specialists.

Pro forma results of operations for these acquisitions have not been presented because they are not material to Maxim Integrated's consolidated results of income, either individually or in the aggregate. Revenue and earnings per share for the acquired businesses since the date of acquisition through June 29, 2013 were not provided as they are not material. Goodwill, which represents the excess of the purchase price over the net tangible and intangible assets acquired, is not expected to be deductible for tax purposes. Acquisition costs for fiscal year 2012 were not material.

Aggregate purchase price allocation for acquisitions made by Maxim Integrated during fiscal year 2012 is as follows:

 
SensorDynamics
 
Other acquisitions
 
Total
 
 
 
(in thousands)
 
 
Tangible assets
$
18,692

 
$
1,159

 
$
19,851

Debt assumed
(29,078
)
 
—

 
(29,078
)
Other liabilities assumed
(37,559
)
 
(4,729
)
 
(42,288
)
Net liabilities assumed
(47,945
)
 
(3,570
)
 
(51,515
)
Amortizable intangible assets
20,900

 
17,840

 
38,740

IPR&D
19,600

 
—

 
19,600

Goodwill (1)
130,594

 
38,392

 
168,986

Total purchase price (1)
$
123,149

 
$
52,662

 
$
175,811

(1) Includes $11.4 million of contingent consideration relating to the other acquisitions discussed further below.

The following table presents details of the Company's intangible assets acquired through business combinations completed during fiscal year 2012 (in thousands, except years):

 
Intellectual Property
 
Customer Relationships
 
Trademark
 
Total
 
Weighted Average Useful Life (in Years)
 
Amount
 
Weighted Average Useful Life (in Years)
 
Amount
 
Weighted Average Useful Life (in Years)
 
Amount
 
 
SensorDynamics
7.0
 
$
16,400

 
7.0
 
$
4,100

 
3.0
 
$
400

 
$
20,900

Other acquisitions
9.2
 
15,340

 
3.0
 
2,500

 
0.0
 
—

 
17,840

Total
 
 
$
31,740

 
 
 
$
6,600

 
 
 
$
400

 
$
38,740

Weighted Average (in Years)
8.1
 
 
 
5.5
 
 
 
3.0
 
 
 
 


SENSORDYNAMICS

On July 18, 2011, the Company acquired SensorDynamics, a semiconductor company that develops proprietary sensor and microelectromechanical solutions. SensorDynamics is based in Lebring, near Graz, Austria. The purpose of the acquisition was to allow Maxim Integrated to combine sensors with analog products. The total cash consideration associated with the acquisition was approximately $123.1 million.

OTHER ACQUISITIONS

The Company acquired three other companies during fiscal year 2012, the biggest of which is a company that develops low power high performance analog circuits. The total cash consideration associated with the acquisition was approximately $41.3 million. Maxim Integrated also recorded $11.4 million, representing the fair value of contingent consideration that would be payable in the future should certain specified project milestones be met. The contingent consideration was calculated based on probabilities that were developed regarding the likelihood that the product development milestones would be met and when the contingent payments would occur. Based on these factors, a probability weighted earnout amount was calculated and discounted (at the cost of debt) to present value.

Acquisitions in fiscal year 2011

Aggregate purchase price allocation for Maxim Integrated's fiscal year 2011 acquisitions:

 
 
Phyworks
 
Other acquisitions
 
Total
 
 
 
 
(In thousands)
 
 
Tangible assets
 
$
5,676

 
$
662

 
$
6,338

Liabilities assumed
 
(17,524
)
 
(818
)
 
(18,342
)
Net liabilities assumed
 
(11,848
)
 
(156
)
 
(12,004
)
Amortizable intangible assets
 
50,800

 
1,750

 
52,550

IPR&D
 
5,800

 
2,580

 
8,380

Goodwill (1)
 
26,606

 
14,187

 
40,793

Total purchase price (1)
 
$
71,358

 
$
18,361

 
$
89,719


(1) Includes $8.8 million of contingent consideration relating to one of the other acquisitions discussed further below

The following table presents details of the Company's intangible assets acquired through business combinations completed during fiscal year 2011 (in thousands, except years):

 
Intellectual Property
 
Customer Relationships
 
Backlog
 
Trademark
 
Total
 
Weighted Average Useful Life (in Years)
 
Amount
 
Weighted Average Useful Life (in Years)
 
Amount
 
Weighted Average Useful Life (in Years)
 
Amount
 
Weighted Average Useful Life (in Years)
 
Amount
 
 
Phyworks
5.0
 
$
47,100

 
5.0
 
$
1,600

 
1.3
 
$
1,900

 
1.0
 
$
200

 
$
50,800

Other acquisitions
3.0
 
1,750

 
0.0
 
—

 
0.0
 
—

 
0.0
 
—

 
1,750

Total
 
 
$
48,850

 
 
 
$
1,600

 
 
 
$
1,900

 
 
 
$
200

 
$
52,550

Weighted Average (in Years)
4.9
 
 
 
5.0
 
 
 
1.3
 
 
 
1.0
 
 
 
 


PHYWORKS

On September 7, 2010, the Company acquired Phyworks Limited, a developer of high-speed communications integrated circuits. The Company expects that none of the goodwill associated with the acquisition will be deductible for tax purposes. No supplemental pro forma information is presented for the acquisition due to the immaterial effect of the acquisition on the Company's results of operations.

OTHER ACQUISITIONS

During fiscal year 2011, the Company completed two other acquisitions, the biggest of which is a developer of highly integrated, analog, mixed-signal solutions, as well as design methods and flows for analog system-on-a-chip (SoCs). The total cash consideration associated with the acquisition was $8.2 million. The acquired assets included cash of $0.4 million. Maxim Integrated also recorded $8.8 million, representing the fair value of contingent consideration that would be payable in the future should certain specified project milestones be met.