Acquisitions (Notes)
 3 Months Ended
Sep. 27, 2014
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]
ACQUISITIONS

Acquisitions completed in fiscal year 2015

None.

Acquisitions completed in fiscal year 2014

The Company completed two acquisitions during fiscal year 2014.

VOLTERRA SEMICONDUCTOR CORPORATION

On October 1, 2013, the Company completed its acquisition of Volterra Semiconductor Corporation ("Volterra"), formerly a publicly traded company that develops power management solutions. The primary reason for this acquisition was to expand the Company's available market across a wide range of end markets, including enterprise server, cloud computing, communications and energy. The results of operations of Volterra are included in the Company’s Condensed Consolidated Statements of Income, beginning in the second quarter of fiscal year 2014. Acquisition-related costs for the twelve months ended June 28, 2014 were $7.0 million.

The total purchase price for Volterra was approximately $615 million and was comprised of:

 
 
(in thousands)
Cash consideration for 100% of outstanding common stock of Volterra at $23 per share
 
$
593,250

Cash consideration for vested options settlement
 
21,756

Total preliminary purchase price
 
$
615,006



The preliminary purchase price allocation as of the date of the acquisition is set forth in the table below and reflects various fair value estimates and analysis. These estimates were determined through established and generally accepted valuation techniques, including preliminary work performed by third-party valuation specialists, and are subject to change during the purchase price allocation period (up to one year from the acquisition date) as valuations are finalized.

 
Volterra
 
(in thousands)
Cash and cash equivalents and short-term investments
$
163,500

Accounts receivable
23,453

Inventories
33,339

Other tangible assets
17,151

Accrued expenses
(35,343
)
Income taxes payable
(23,241
)
Other liabilities assumed
(20,149
)
Net tangible assets
158,710

Amortizable intangible assets
226,900

In-process research and development ("IPR&D")
56,200

Goodwill
174,894

Substitution of stock-based compensation awards
(1,698
)
Total purchase price
$
615,006



The Company has evaluated and continues to evaluate certain pre-acquisition contingencies, including corporate income tax related payables, uncertain tax positions and certain legal contingencies, relating to Volterra that existed as of the acquisition date. Additional information, which existed as of the acquisition date but was at that time unknown to the Company, may become known to the Company during the remainder of the purchase price allocation period.

IPR&D assets relate to future technology, is capitalized until the technology is ready for its intended use and then amortized over the technology useful life. IPR&D costs incurred by the Company subsequent to the acquisition are expensed.

Goodwill was primarily attributable to the opportunities from the addition of Volterra's product portfolio which complements the Company’s suite of products, including providing integrated process solutions to customers. The goodwill is not deductible for tax purposes.

The amortizable intangible assets are being amortized on a straight-line basis over their estimated useful lives as follows:

 
Volterra acquisition
 
Fair value
(in thousands)
 
Weighted average useful life (in years)
Intellectual property
$
192,500

 
4.9
Customer relationships
24,600

 
9.6
Trade name
6,400

 
4.0
Backlog
900

 
0.4
Patents
2,500

 
4.8
Total amortizable intangible assets
$
226,900

 
 


Pro forma results of operations for this acquisition have not been presented because it is not material to the Company's Condensed Consolidated Statements of Income.

OTHER ACQUISITION

The Company acquired another company during the fiscal year ended June 28, 2014, which develops low power high performance analog circuits. The total cash consideration paid to acquire this company was approximately $6.1 million for which the purchase price was largely attributable to the developed intellectual property. Goodwill associated with this acquisition was $0.5 million. Acquisition related costs were not material for this transaction.