Annual report pursuant to Section 13 and 15(d)

GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables)

v3.21.2
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables)
 12 Months Ended
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill Rollforward The following table presents goodwill carrying value and the movements by reporting unit during the fiscal years ended June 30, 2021 and 2020(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 56,180  —  —  —  —  56,180 
Goodwill adjustments 166  —  4,195  29,773  —  34,134 
Goodwill impairment —  —  (144,179) (112,470) —  (256,649)
Foreign currency adjustment (121) —  —  —  —  (121)
Balance as of June 30, 2020 416,840  25,908  681,858  907,221  13,575  2,045,402 
Goodwill disposal from sale of business(2)
—  —  —  (34,250) —  (34,250)
Foreign currency adjustment 20  —  —  —  —  20 
Balance as of June 30, 2021 $ 416,860  $ 25,908  $ 681,858  $ 872,971  $ 13,575  $ 2,011,172 
_________________
(1)No goodwill was assigned to the Other reporting unit, and accordingly is not disclosed in the table above.
(2)Refer to the Non-controlling Interest section of Note 10 “Equity, Long-term Incentive Compensation Plans and Non-Controlling Interest” for more information on the sale of PixCell Medical Technologies Ltd. (“PixCell”).
Schedule of Purchased Intangible Assets
The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands) As of June 30, 2021 As of June 30, 2020
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
 $ 1,382,612  $ 499,219  $ 883,393  $ 1,269,883  $ 342,623  $ 927,260 
Customer relationships
4-9
 305,817  131,386  174,431  305,817  98,754  207,063 
Trade name/trademark
4-7
 117,383  53,493  63,890  117,383  39,216  78,167 
Backlog and other
<1-9
 50,403  49,962  441  50,404  47,215  3,189 
Intangible assets subject to amortization 1,856,215  734,060  1,122,155  1,743,487  527,808  1,215,679 
In-process research and development 63,256  100  63,156  175,834  100  175,734 
Total $ 1,919,471  $ 734,160  $ 1,185,311  $ 1,919,321  $ 527,908  $ 1,391,413 
Schedule of Amortization Expense for Purchased Intangible Assets
Amortization expense for purchased intangible assets for the periods indicated below was as follows:
Year Ended June 30,
(In thousands) 2021 2020 2019
Amortization expense - Cost of revenues $ 156,596  $ 145,823  $ 52,387 
Amortization expense - Selling, general and administrative 49,531  74,532  34,992 
Amortization expense - Research and development 125  224  13 
Total $ 206,252  $ 220,579  $ 87,392 
Schedule of Remaining Estimated Amortization Expense
Based on the purchased intangible assets’ gross carrying value recorded as of June 30, 2021, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal Year Ending June 30: Amortization
(In thousands)
2022 $ 209,349 
2023 208,257 
2024 205,740 
2025 193,521 
2026 178,346 
Thereafter 126,942 
Total $ 1,122,155