Page 104 Skyworks / Annual Report 2011 Holders may convert the 1.50% Notes at any time on or prior to the close of business on the final maturity date. If a holder of a 1.50% Note elects to convert such Notes at maturity, the Company may continue to choose On March 2, 2007, the Company issued $200.0 million aggregate principal amount of convertible subordinated notes (“2007 Convertible Notes”). The offering contained two tranches. The first tranche consisted of $100.0 million of 1.25% convertible subordinated notes due March 2010 (the “1.25% Notes”) which have been retired. The second tranche consisted of $100.0 million aggregate principal amount of 1.50% convertible subordinated notes due March 2012 (the “1.50% Notes”). As of September 30, 2011, $26.7 million aggregate principal amount of our 1.50% Notes remains outstanding. The Company pays interest in cash semi-annually in arrears on March 1 and September 1 of each year on the 1.50% Notes. The conversion price of the 1.50% Notes is 105.0696 shares per $1,000 principal amount of notes to be redeemed, which is the equivalent of a conversion price of approximately $9.52 per share, plus accrued and unpaid interest, if any, to the conversion date. Holders of the remaining $26.7 million aggregate principal balance of the 1.50% Notes may require the Company to repurchase the 1.50% Notes upon a change in control of the Company. LONG-TERM DEBT 9. BORROWING ARRANGEMENTS NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The changes in the gross carrying amount of goodwill and intangible assets are as follows (in thousands): Goodwill Developed Technology Customer Relationships Patents and Other Nonamortizing Trademarks Total Balance as of October 2, 2009 .... $482,893 $13,750 $21,510 $ 5,966 $3,269 $527,388 Additions during period ....... 2,731 400 — — — 3,131 Deductions during year ....... (37) — — — — (37) Balance as of October 1, 2010 .... 485,587 14,150 21,510 5,966 3,269 530,482 Additions during period ....... 177,529 6,510 36,000 47,930 600 268,569 Deductions during year ....... (75) — — — — (75) Balance as of September 30, 2011 ...................... $663,041 $20,660 $57,510 $53,896 $3,869 $798,976 The increases in goodwill and intangible assets during the fiscal year ended September 30, 2011 resulted from the acquisitions, primarily SiGe, during the fiscal year ended September 30, 2011 as discussed in Note 3, Business Combinations. The Company tests its goodwill and non-amortizing trademarks for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if certain events occur indicating that the carrying value of goodwill or non-amortizing trademarks may be impaired. The results of the annual impairment tests indicated that none of the goodwill or trademarks had been impaired during the year and as a result, step two was not performed. There were no other indicators of impairment noted during the fiscal year ended September 30, 2011. Annual amortization expense for the next five years related to intangible assets is expected to be as follows (in thousands): The increase in amortization expense during the fiscal year ended September 30, 2011 relates to the identifiable assets acquired as part of the business combinations noted in Note 3, Business Combinations. 2012 2013 2014 2015 2016 Amortization expense ................... $25,599 $19,810 $15,211 $13,172 $9,147