Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Purchased Intangible Assets

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Goodwill and Purchased Intangible Assets
 6 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND PURCHASED INTANGIBLE ASSETS
NOTE 7 – GOODWILL AND PURCHASED INTANGIBLE ASSETS
Goodwill
We have four reporting units: Wafer Inspection, Patterning, Global Service and Support (“GSS”), and Others. The following table presents goodwill carrying value and the movements by reporting unit during the six months ended December 31, 2018:
(In thousands)
 
Wafer Inspection
 
Patterning
 
GSS
 
Others
 
Total
Balance as of June 30, 2018
 
$
281,005

 
$
53,255

 
$
8,039

 
$
12,399

 
$
354,698

Acquired goodwill
 
—

 
—

 
4,631

 
1,176

 
5,807

Foreign currency and other adjustments
 
(25
)
 
—

 
—

 
—

 
(25
)
Balance as of December 31, 2018
 
$
280,980

 
$
53,255

 
$
12,670

 
$
13,575

 
$
360,480


The change in goodwill during the six months ended December 31, 2018 resulted primarily from the acquisition of certain assets and liabilities of privately-held companies. For additional details, refer to Note 6 “Business Combinations”.
As of December 31, 2018, there have been no significant events or circumstances affecting the carrying value 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 our 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:
(In thousands)
 
 
As of
December 31, 2018
 
As of
June 30, 2018
Category
Range of
Useful Lives
 
Gross
Carrying
Amount
 
Accumulated
Amortization
and
Impairment
 
Net
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
and
Impairment
 
Net
Amount
Existing technology
4-7 years
 
$
166,029

 
$
146,001

 
$
20,028

 
$
160,859

 
$
144,202

 
$
16,657

Trade name/Trademark
5-7 years
 
21,073

 
20,143

 
930

 
20,993

 
20,060

 
933

Customer relationships
4-7 years
 
58,050

 
55,388

 
2,662

 
56,680

 
55,136

 
1,544

Other
<1-5 years
 
1,270

 
1,072

 
198

 
660

 
461

 
199

Total
 
 
$
246,422

 
$
222,604

 
$
23,818

 
$
239,192

 
$
219,859

 
$
19,333


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 December 31, 2018 and 2017, amortization expense for purchased intangible assets was $1.3 million and $1.2 million, respectively. For the six months ended December 31, 2018 and 2017, amortization expense for purchased intangible assets was $2.7 million and $2.4 million, respectively. The change in purchased intangible assets gross carrying amount resulted primarily from the acquisition of certain assets and liabilities of privately-held companies. For additional details, refer to Note 6 “Business Combinations.”
Based on the purchased intangible assets gross carrying amount recorded as of December 31, 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:
Fiscal year ending June 30:
Amortization
(In thousands)
2019 (remaining 6 months)
$
2,218

2020
4,438

2021
4,438

2022
4,438

2023
4,242

Thereafter
4,044

Total
$
23,818