Quarterly report [Sections 13 or 15(d)]

GOODWILL AND PURCHASED INTANGIBLE ASSETS

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GOODWILL AND PURCHASED INTANGIBLE ASSETS
 3 Months Ended
Sep. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND PURCHASED INTANGIBLE ASSETS GOODWILL AND PURCHASED INTANGIBLE ASSETS
Goodwill
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in business combinations.
The following table presents changes in goodwill carrying value by reportable segment during the three months ended September 30, 2025:
(In thousands) Semiconductor Process Control Specialty Semiconductor Process Printed Circuit Board ("PCB") and Component Inspection Total
Balances as of June 30, 2025 $ 759,885  $ 681,858  $ 350,450  $ 1,792,193 
Foreign currency adjustments (12) (379) (780) (1,171)
Balances as of September 30, 2025 $ 759,873  $ 681,479  $ 349,670  $ 1,791,022 
As of September 30, 2025, and June 30, 2025 goodwill is net of accumulated impairment losses of $277.6 million and $70.5 million in the Semiconductor Process Control and PCB and Component Inspection reportable segments, respectively.
Goodwill is not subject to amortization but is tested for impairment annually, as well as whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
As of September 30, 2025, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to the annual assessment performed in the third quarter of the fiscal year ended June 30, 2025. For additional details, refer to Note 7, “Goodwill and Purchased Intangible Assets” to our Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2025.
Purchased Intangible Assets
Changes in the gross carrying amount of intangible assets result from changes in foreign currency exchange rates and acquisitions. The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands) As of September 30, 2025 As of June 30, 2025
Category Gross
Carrying
Amount		 Accumulated
Amortization
and
Impairment		 Net
Amount		 Gross
Carrying
Amount		 Accumulated
Amortization
and
Impairment		 Net
Amount
Existing technology $ 1,555,523  $ 1,260,387  $ 295,136  $ 1,555,688  $ 1,222,520  $ 333,168 
Customer relationships 358,758  293,124  65,634  359,555  285,274  74,281 
Trade name / Trademark 119,411  115,613  3,798  119,409  113,210  6,199 
Order backlog and other 91,372  84,821  6,551  89,309  84,419  4,890 
Intangible assets subject to amortization
 2,125,064  1,753,945  371,119  2,123,961  1,705,423  418,538 
In-process research and development 46,074  19,827  26,247  46,074  19,827  26,247 
Total $ 2,171,138  $ 1,773,772  $ 397,366  $ 2,170,035  $ 1,725,250  $ 444,785 
Purchased intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be fully recoverable. Impairment indicators primarily include declines in our operating cash flows from the use of these assets. If impairment indicators are present, we are required to perform a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to these long-lived assets to their carrying value.
As of September 30, 2025, there were no impairment indicators for purchased intangible assets.
Amortization expense for purchased intangible assets was $49.3 million and $56.8 million for the three months ended September 30, 2025, and 2024, respectively.
Based on the purchased intangible assets gross carrying amount recorded as of September 30, 2025, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30: Amortization (In thousands)
2026 (remaining nine months) $ 141,049 
2027 128,824 
2028 48,983 
2029 35,366 
2030 14,560 
2031 and thereafter 2,337 
Total $ 371,119 
The expected amortization expense is an estimate. Actual amounts of amortization may differ from estimated amounts due to additional intangible asset acquisitions, changes in foreign currency exchange rates, impairment of intangible assets and other events.