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, 2026
Intangible Asset, Goodwill and Other [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, 2026:
(In thousands) Semiconductor Process Control Specialty Semiconductor Process Printed Circuit Board (“PCB”) and Component Inspection Total
Balances as of June 30, 2026 $ 758,216  $ 681,090  $ 349,452  $ 1,788,758 
Foreign currency adjustments (426) 216  1,135  925 
Balances as of September 30, 2026 $ 757,790  $ 681,306  $ 350,587  $ 1,789,683 
As of September 30, 2026, and June 30, 2026, 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, 2026, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to the annual assessment performed in the second quarter of the fiscal year 2026. For additional details, refer to Note 6, “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, 2026.
Purchased Intangible Assets
Changes in the gross carrying amount of intangible assets result from changes in foreign currency exchange rates, acquisitions and derecognition of fully amortized intangible assets that no longer provide future economic benefit. The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands) As of September 30, 2026 As of June 30, 2026
Category Gross
Carrying
Amount		 Accumulated
Amortization
and
Impairment		 Net
Amount		 Gross
Carrying
Amount		 Accumulated
Amortization
and
Impairment		 Net
Amount
Existing technology $ 1,531,180  $ 1,381,291  $ 149,889  $ 1,531,405  $ 1,346,585  $ 184,820 
Customer relationships 324,426  292,593  31,833  323,297  283,438  39,859 
Trade name/trademark 98,238  98,192  46  98,238  98,192  46 
Order backlog and other 8,612  2,829  5,783  8,612  2,549  6,063 
Intangible assets subject to amortization
 1,962,456  1,774,905  187,551  1,961,552  1,730,764  230,788 
In-process research and development 43,907  18,860  25,047  43,907  18,860  25,047 
Total $ 2,006,363  $ 1,793,765  $ 212,598  $ 2,005,459  $ 1,749,624  $ 255,835 
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, 2026, there were no impairment indicators for purchased intangible assets.
Amortization expense for purchased intangible assets was $43.3 million and $49.3 million for the three months ended September 30, 2026 and 2025, respectively.
Based on the purchased intangible assets gross carrying amount recorded as of September 30, 2026, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal Year Ending June 30: Amortization (In thousands)
2027 (remaining nine months) $ 85,822 
2028 49,123 
2029 35,566 
2030 14,760 
2031 1,514 
2032 and thereafter 766 
Total $ 187,551 
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.