Goodwill and Purchased Intangible Assets (Tables)
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9 Months Ended |
Mar. 31, 2019 |
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| Goodwill and Intangible Assets Disclosure [Abstract] |
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| Goodwill Balances |
The following table presents goodwill carrying value and the movements during the nine months ended March 31, 2019:
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(In thousands) |
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Wafer Inspection |
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Patterning |
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GSS |
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Others |
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Orbotech |
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Total |
Balance as of June 30, 2018 |
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$ |
281,005 |
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$ |
53,255 |
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$ |
8,039 |
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$ |
12,399 |
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$ |
— |
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$ |
354,698 |
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Acquired goodwill |
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— |
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24,863 |
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17,318 |
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|
1,176 |
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1,773,544 |
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1,816,901 |
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Foreign currency and other adjustments |
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(14 |
) |
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— |
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— |
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— |
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1,317 |
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1,303 |
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Balance as of March 31, 2019 |
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$ |
280,991 |
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$ |
78,118 |
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$ |
25,357 |
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$ |
13,575 |
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$ |
1,774,861 |
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$ |
2,172,902 |
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| Components of Purchased Intangible Assets |
The components of purchased intangible assets as of the dates indicated below were as follows:
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(In thousands) |
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As of
March 31, 2019 |
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As of
June 30, 2018 |
Category |
Range of
Useful Lives
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Gross
Carrying
Amount
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Accumulated
Amortization,
Impairment, and Other
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Net
Amount
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Gross
Carrying
Amount
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Accumulated
Amortization
and
Impairment
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Net
Amount
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Existing technology |
4-8 years |
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$ |
1,238,037 |
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$ |
161,827 |
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$ |
1,076,210 |
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$ |
160,859 |
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$ |
144,202 |
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$ |
16,657 |
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Trade name/Trademark |
5-7 years |
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115,573 |
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21,638 |
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93,935 |
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20,993 |
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20,060 |
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933 |
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Customer relationships |
4-9 years |
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370,665 |
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59,740 |
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310,925 |
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56,680 |
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55,136 |
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1,544 |
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Backlog and other |
<1-8.5 years |
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35,437 |
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5,267 |
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30,170 |
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|
660 |
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461 |
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199 |
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Intangible assets subject to amortization |
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1,759,712 |
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248,472 |
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1,511,240 |
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239,192 |
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219,859 |
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19,333 |
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In-process research and development |
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183,500 |
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427 |
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183,073 |
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— |
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— |
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— |
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Total |
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$ |
1,943,212 |
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$ |
248,899 |
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$ |
1,694,313 |
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$ |
239,192 |
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$ |
219,859 |
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$ |
19,333 |
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| Amortization Expense for Purchased Intangible Assets |
Amortization expense for purchased intangible assets for the periods indicated below was as follows:
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Three months ended |
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Nine months ended |
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March 31, |
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March 31, |
(In thousands) |
2019 |
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2018 |
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2019 |
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2018 |
Amortization expense- Cost of revenues |
$ |
15,770 |
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$ |
1,122 |
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$ |
17,628 |
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$ |
3,366 |
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Amortization expense- Selling, general and administrative |
10,086 |
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65 |
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10,973 |
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220 |
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Amortization expense- Research and development |
12 |
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— |
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12 |
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— |
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Total |
$ |
25,868 |
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$ |
1,187 |
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$ |
28,613 |
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$ |
3,586 |
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| Remaining Estimated Amortization Expense |
Based on the purchased intangible assets gross carrying amount recorded as of March 31, 2019, the underlying assets, the remaining estimated annual amortization expense is expected to be as follows:
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Fiscal year ending June 30: |
Amortization
(In thousands)
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2019 (remaining 3 months) |
$ |
59,114 |
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2020 |
216,956 |
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2021 |
196,915 |
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2022 |
196,915 |
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2023 |
195,691 |
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Thereafter |
645,649 |
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Total |
$ |
1,511,240 |
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