Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Purchased Intangible Assets

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Goodwill and Purchased Intangible Assets
3 Months Ended
Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Purchased Intangible Assets
GOODWILL AND PURCHASED INTANGIBLE ASSETS
Goodwill
The following table presents goodwill balances as of the dates indicated below:
(In thousands)
As of
September 30, 2012
 
As of
June 30, 2012
Gross goodwill balance
$
604,418

 
$
604,302

Accumulated impairment losses
(277,570
)
 
(276,586
)
Net goodwill balance
$
326,848

 
$
327,716


The changes in the gross goodwill balance since June 30, 2012 resulted from foreign currency translation adjustments. In September 2012, the Company decided to exit the solar inspection business due to adverse market conditions in that industry and recognized a goodwill impairment charge of $1.0 million.
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. In September 2011, the FASB amended its guidance to simplify testing goodwill for impairment, allowing an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test.
The Company performed a qualitative assessment of the goodwill by reporting unit as of November 30, 2011 during the three months ended December 31, 2011 and concluded that it was more likely than not that the fair value of each of the reporting units exceeded its carrying amount. As of December 31, 2011, the Company's assessment indicated that goodwill in the reporting units was not impaired. There have been no significant events or circumstances affecting the valuation of goodwill subsequent to the qualitative assessment performed in the second quarter of the fiscal year ended June 30, 2012. As noted above, the Company recognized a goodwill impairment charge of $1.0 million during the three months ended September 30, 2012 in connection with the Company's decision to exit the solar inspection business. The next annual assessment of the goodwill by reporting unit will be performed in the second quarter of the fiscal year ending June 30, 2013.
Purchased Intangible Assets
The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands)
 
 
As of
September 30, 2012
 
As of
June 30, 2012
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
 
$
133,659

 
$
113,494

 
$
20,165

 
$
134,561

 
$
110,370

 
$
24,191

Patents
6-13 years
 
57,648

 
48,559

 
9,089

 
57,648

 
46,966

 
10,682

Trade name/Trademark
4-10 years
 
19,893

 
14,803

 
5,090

 
19,893

 
14,428

 
5,465

Customer relationships
6-7 years
 
54,680

 
40,943

 
13,737

 
54,823

 
39,525

 
15,298

Other
0-1 year
 
16,200

 
16,200

 

 
16,200

 
16,200

 

Total
 
 
$
282,080

 
$
233,999

 
$
48,081

 
$
283,125

 
$
227,489

 
$
55,636


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, 2012 and 2011, amortization expense for other intangible assets was $7.2 million and $8.0 million, respectively. Based on the intangible assets recorded as of September 30, 2012, and assuming no subsequent additions to, or impairment of, the underlying assets, the remaining estimated amortization expense is expected to be as follows:
Fiscal year ending June 30:
Amortization
(In thousands)
2013 (remaining 9 months)
$
13,566

2014
15,368

2015
12,752

2016
5,564

2017
806

2018 and thereafter
25

Total
$
48,081