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Amortization and Impairment Testing of Identifiable Intangible Assets During the year ended July 30, 2016, Cisco Systems, Inc. acquired the following identifiable intangible assets through

Amortization and Impairment Testing of Identifiable Intangible Assets

During the year ended July 30, 2016, Cisco Systems, Inc. acquired the following identifiable intangible assets through its purchase of two companies (in thousands):

Limited Lives Indefinite Lives
Technology Customer Relationships IPR&D

Acquired Company

(in thousands)

Useful life (in years) Amount Useful life (in years) Amount Amount
Lancope, Inc 5 $79,000 6 $29,000 $121,000
Jasper Technologies, Inc 6 240,000 7 75,000 23,000

Cisco acquired Lancope, Inc. in December 2015, and Jasper Technologies, Inc. in March 2016. Cisco separately tests identifiable intangibles acquired from each company for impairment, and collects the following information to conduct impairment tests at the end of fiscal 2016 (in thousands):

Technology Customer Relationships IPR&D

Acquired Company

(in thousands)

Sum of expected undiscounted cash flows Sum of expected discounted cash flows Sum of expected undiscounted cash flows Sum of expected discounted cash flows Sum of expected undiscounted cash flows Sum of expected discounted cash flows
Lancope, Inc $70,000 $65,000 $25,000 $20,000 $130,000 $105,000
Jasper Technologies, Inc 200,000 150,000 80,000 65,000 30,000 26,000

Required

a. Calculate amortization expense for the above identifiable intangibles for fiscal 2016. Intangibles are amortized on a straight-line basis starting in the month following acquisition.

  • Round answers to the nearest whole number.
  • Enter answers in thousands.

Acquired Company Technology Customer Relationships
Lancope, Inc. $Answer

$Answer

Jasper Technologies, Inc. Answer

Answer

b. Calculate impairment losses for fiscal 2016.

  • Round answers to the nearest whole number.
  • Enter answers in thousands.

Acquired Company Technology Customer Relationships IPR&D
Lancope, Inc. $Answer

$Answer

$Answer

Jasper Technologies, Inc. Answer

Answer

Answer

c. Determine the amounts reported on Ciscos fiscal 2016 balance sheet for technology, customer relationships, and in-process R&D.

  • Round answers to the nearest whole number.
  • Enter answers in thousands.

Amounts reported on Cisco's fiscal 2016 balance sheet
Technology $Answer

Customer Relationships Answer

IPR&D Answer

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