Goodwill and Purchased Intangible Assets
|3 Months Ended|
Sep. 30, 2018
|Goodwill and Intangible Assets Disclosure [Abstract]|
|GOODWILL AND PURCHASED INTANGIBLE ASSETS||
NOTE 7 – GOODWILL AND PURCHASED INTANGIBLE ASSETS
The Company has four reporting units: Wafer Inspection, Patterning, Global Service and Support (“GSS”), and Others. The following table presents goodwill balances and the movements by reporting unit during the three months ended September 30, 2018:
The acquired goodwill during the three months ended September 30, 2018 resulted primarily from the acquisition of certain assets and liabilities of privately-held companies. See Note 6 “Business Combinations” for additional details.
As of September 30, 2018, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to the qualitative assessment performed in the third quarter of the fiscal year ended June 30, 2018. For additional details, refer to Note 6 “Goodwill and Purchased Intangible Assets,” of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018. The next annual assessment of goodwill by reporting unit is scheduled to be performed in the third quarter of the fiscal year ending June 30, 2019.
Purchased Intangible Assets
The components of purchased intangible assets as of the dates indicated below were as follows:
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 recoverable.
For the three months ended September 30, 2018 and 2017, amortization expense for purchased intangible assets was $1.4 million and $1.2 million, respectively. The increase in the gross carrying value resulted primarily from the acquisition of certain assets and liabilities of privately-held companies. See Note 6 “Business Combinations” for additional details. Based on the purchased intangible assets recorded as of September 30, 2018, and assuming no subsequent additions to, or impairment of, the underlying assets, the remaining estimated annual amortization expense is expected to be as follows:
The entire disclosure for goodwill and intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef