Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Purchased Intangible Assets (Tables)

v3.20.1
Goodwill and Purchased Intangible Assets (Tables)
9 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Balances The following table presents goodwill carrying value and the movements during the nine months ended March 31, 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
 
54,001

 

 

 

 

 
54,001

Goodwill adjustments
 
70

 

 
4,195

 
29,773

 

 
34,038

Goodwill impairment
 

 

 
(144,179
)
 
(112,470
)
 

 
(256,649
)
Foreign currency adjustments
 
(119
)
 

 

 

 

 
(119
)
Balance as of March 31, 2020
 
$
414,567

 
$
25,908

 
$
681,858

 
$
907,221

 
$
13,575

 
$
2,043,129


_________________
(1)
No goodwill was assigned to the Other reporting unit, and accordingly was excluded in the table above.
Components of Purchased Intangible Assets
The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands)
 
 
As of
March 31, 2020
 
As of
June 30, 2019
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
 
$
1,266,088

 
$
305,640

 
$
960,448

 
$
1,224,629

 
$
196,582

 
$
1,028,047

Customer relationships
4-9
 
305,017

 
90,606

 
214,411

 
297,250

 
66,471

 
230,779

Trade name / Trademark
4-7
 
117,133

 
35,650

 
81,483

 
114,573

 
25,052

 
89,521

Backlog and other
<1-9
 
50,403

 
44,636

 
5,767

 
43,969

 
19,146

 
24,823

Intangible assets subject to amortization
 
 
1,738,641

 
476,532

 
1,262,109

 
1,680,421

 
307,251

 
1,373,170

In-process research and development
 
 
175,835

 
100

 
175,735

 
187,500

 

 
187,500

Total
 
 
$
1,914,476

 
$
476,632

 
$
1,437,844

 
$
1,867,921

 
$
307,251

 
$
1,560,670


Amortization Expense for Purchased Intangible Assets
Amortization expense for purchased intangible assets for the periods indicated below was as follows:
 
Three Months Ended
March 31,
 
Nine Months Ended
March 31,
(In thousands)
2020
 
2019
 
2020
 
2019
Amortization expense - Cost of revenues
$
36,850

 
$
15,770

 
$
108,835

 
$
17,628

Amortization expense - Selling, general and administrative
17,724

 
10,086

 
60,237

 
10,973

Amortization expense - Research and development
31

 
12

 
193

 
12

Total
$
54,605

 
$
25,868

 
$
169,265

 
$
28,613


Remaining Estimated Amortization Expense
Based on the purchased intangible assets gross carrying amount recorded as of March 31, 2020, the underlying assets, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30:
Amortization
(In thousands)
2020 (remaining three months)
$
51,137

2021
196,847

2022
194,269

2023
193,177

2024
190,660

2025 and thereafter
436,019

Total
$
1,262,109