Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Purchased Intangible Assets (Tables)

v3.19.3.a.u2
Goodwill and Purchased Intangible Assets (Tables)
6 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Balances The following table presents goodwill carrying value and the movements during the six months ended December 31, 2019(1):
(In thousands)
 
Wafer Inspection and Patterning
 
Global Service and Support (GSS)
 
Specialty Semiconductor Process
 
PCB and Display
 
Component Inspection
 
Total
Balance as of June 30, 2019
 
$
360,615

 
$
25,908

 
$
821,842

 
$
989,918

 
$
13,575

 
$
2,211,858

Acquired goodwill
 
54,001

 

 

 

 

 
54,001

Goodwill adjustments
 

 

 

 
33,968

 

 
33,968

Foreign currency adjustments
 
(46
)
 

 

 

 

 
(46
)
Balance as of December 31, 2019
 
$
414,570

 
$
25,908

 
$
821,842

 
$
1,023,886

 
$
13,575

 
$
2,299,781


_________________
(1)
No goodwill was assigned to the Other reporting unit, and accordingly was excluded in the table above.
Components of Purchased Intangible Assets
The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands)
 
 
As of
December 31, 2019
 
As of
June 30, 2019
Category
Range of
Useful 
Lives
(in years)
 
Gross
Carrying
Amount
 
Accumulated
Amortization,
and Impairment
 
Net
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
and
Impairment
 
Net
Amount
Existing technology
4-8
 
$
1,251,282

 
$
268,785

 
$
982,497

 
$
1,224,629

 
$
196,582

 
$
1,028,047

Customer relationships
4-9
 
305,017

 
82,488

 
222,529

 
297,250

 
66,471

 
230,779

Trade name / Trademark
4-7
 
117,133

 
32,094

 
85,039

 
114,573

 
25,052

 
89,521

Backlog and other
<1-9
 
50,405

 
38,555

 
11,850

 
43,969

 
19,146

 
24,823

Intangible assets subject to amortization
 
 
1,723,837

 
421,922

 
1,301,915

 
1,680,421

 
307,251

 
1,373,170

In-process research and development
 
 
190,635

 
100

 
190,535

 
187,500

 

 
187,500

Total
 
 
$
1,914,472

 
$
422,022

 
$
1,492,450

 
$
1,867,921

 
$
307,251

 
$
1,560,670


Amortization Expense for Purchased Intangible Assets
Amortization expense for purchased intangible assets for the periods indicated below was as follows:
 
Three Months Ended
 
Six Months Ended
 
December 31,
 
December 31,
(In thousands)
2019
 
2018
 
2019
 
2018
Amortization expense - Cost of revenues
$
36,364

 
968

 
$
71,985

 
$
1,858

Amortization expense - Selling, general and administrative
20,257

 
343

 
42,513

 
887

Amortization expense - Research and development
131

 

 
162

 

Total
$
56,752

 
$
1,311

 
$
114,660

 
$
2,745


Remaining Estimated Amortization Expense
Based on the purchased intangible assets gross carrying amount recorded as of December 31, 2019, the underlying assets, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30:
Amortization
(In thousands)
2020 (remaining 6 months)
$
104,770

2021
194,901

2022
192,323

2023
191,232

2024
188,714

2025 and thereafter
429,975

Total
$
1,301,915