| Schedule of Goodwill Balances |
The following table presents goodwill carrying value and the movements during the three months ended September 30, 2020(1):
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| (In thousands) |
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Wafer Inspection and Patterning |
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Global Service and Support (“GSS”)
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Specialty Semiconductor Process |
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PCB and Display |
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Component Inspection |
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Total |
| Balance as of June 30, 2020 |
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$ |
416,840 |
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$ |
25,908 |
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$ |
681,858 |
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$ |
907,221 |
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$ |
13,575 |
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$ |
2,045,402 |
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| Foreign currency adjustments |
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30 |
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— |
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— |
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— |
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— |
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30 |
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| Balance as of September 30, 2020 |
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$ |
416,870 |
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$ |
25,908 |
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$ |
681,858 |
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$ |
907,221 |
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$ |
13,575 |
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$ |
2,045,432 |
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_________________ (1)No goodwill was assigned to the Other reporting unit, and accordingly it was excluded in the table above.
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| Components of Purchased Intangible Assets |
The components of purchased intangible assets as of the dates indicated below were as follows:
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As of |
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As of |
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| (In thousands) |
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|
September 30, 2020 |
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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 |
|
$ |
1,269,883 |
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|
$ |
379,663 |
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|
$ |
890,220 |
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$ |
1,269,883 |
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$ |
342,623 |
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$ |
927,260 |
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| Customer relationships |
4-9 |
|
305,817 |
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|
106,912 |
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|
198,905 |
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|
305,817 |
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|
98,754 |
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|
207,063 |
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| Trade name / Trademark |
4-7 |
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117,383 |
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42,785 |
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74,598 |
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|
117,383 |
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|
39,216 |
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|
78,167 |
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| Backlog and other |
<1-9 |
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50,404 |
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|
48,948 |
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|
1,456 |
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|
50,404 |
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|
47,215 |
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|
3,189 |
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| Intangible assets subject to amortization |
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|
1,743,487 |
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|
578,308 |
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|
1,165,179 |
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|
1,743,487 |
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|
527,808 |
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1,215,679 |
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| In-process research and development |
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|
175,834 |
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|
100 |
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|
175,734 |
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|
175,834 |
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|
100 |
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|
175,734 |
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| Total |
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|
$ |
1,919,321 |
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$ |
578,408 |
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$ |
1,340,913 |
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$ |
1,919,321 |
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$ |
527,908 |
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$ |
1,391,413 |
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| Schedule of Amortization Expense for Purchased Intangible Assets |
Amortization expense for purchased intangible assets for the periods indicated below was as follows:
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Three Months Ended |
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September 30, |
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| (In thousands) |
2020 |
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2019 |
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| Amortization expense - Cost of revenues |
$ |
37,040 |
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$ |
35,621 |
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| Amortization expense - Selling, general and administrative |
13,429 |
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|
22,256 |
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| Amortization expense - Research and development |
31 |
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|
31 |
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| Total |
$ |
50,500 |
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$ |
57,908 |
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| Schedule of Remaining Estimated Amortization Expense |
Based on the purchased intangible assets gross carrying amount recorded as of September 30, 2020, the remaining estimated annual amortization expense is expected to be as follows:
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| Fiscal year ending June 30: |
Amortization (In thousands) |
| 2021 (remaining nine months) |
$ |
147,317 |
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| 2022 |
195,239 |
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| 2023 |
194,147 |
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| 2024 |
191,630 |
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| 2025 |
179,421 |
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| 2026 and thereafter |
257,425 |
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| Total |
$ |
1,165,179 |
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