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 |
|
|