Goodwill and Purchased Intangible Assets (Tables)
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9 Months Ended |
Mar. 31, 2020 |
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| Goodwill and Intangible Assets Disclosure [Abstract] |
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| Goodwill Balances |
The following table presents goodwill carrying value and the movements during the nine months ended March 31, 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, 2019 |
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$ |
360,615 |
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$ |
25,908 |
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$ |
821,842 |
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$ |
989,918 |
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$ |
13,575 |
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$ |
2,211,858 |
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Acquired goodwill |
|
54,001 |
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— |
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— |
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— |
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— |
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|
54,001 |
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Goodwill adjustments |
|
70 |
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— |
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|
4,195 |
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|
29,773 |
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— |
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|
34,038 |
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Goodwill impairment |
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— |
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— |
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|
(144,179 |
) |
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(112,470 |
) |
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— |
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(256,649 |
) |
Foreign currency adjustments |
|
(119 |
) |
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— |
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— |
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— |
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— |
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(119 |
) |
Balance as of March 31, 2020 |
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$ |
414,567 |
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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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$ |
2,043,129 |
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_________________
(1)
No goodwill was assigned to the Other reporting unit, and accordingly 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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(In thousands) |
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As of
March 31, 2020 |
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As of
June 30, 2019 |
Category |
Range of
Useful
Lives
(in years)
|
|
Gross
Carrying
Amount
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Accumulated
Amortization,
and Impairment
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|
Net
Amount
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Gross
Carrying
Amount
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Accumulated
Amortization
and
Impairment
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|
Net
Amount
|
Existing technology |
4-8 |
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$ |
1,266,088 |
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$ |
305,640 |
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$ |
960,448 |
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$ |
1,224,629 |
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$ |
196,582 |
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$ |
1,028,047 |
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Customer relationships |
4-9 |
|
305,017 |
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90,606 |
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214,411 |
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297,250 |
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|
66,471 |
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230,779 |
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Trade name / Trademark |
4-7 |
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117,133 |
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35,650 |
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81,483 |
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114,573 |
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25,052 |
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|
89,521 |
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Backlog and other |
<1-9 |
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50,403 |
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44,636 |
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5,767 |
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43,969 |
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19,146 |
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|
24,823 |
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Intangible assets subject to amortization |
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|
1,738,641 |
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476,532 |
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1,262,109 |
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1,680,421 |
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307,251 |
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1,373,170 |
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In-process research and development |
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|
175,835 |
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|
100 |
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|
175,735 |
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|
187,500 |
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— |
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|
187,500 |
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Total |
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$ |
1,914,476 |
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$ |
476,632 |
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$ |
1,437,844 |
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$ |
1,867,921 |
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$ |
307,251 |
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$ |
1,560,670 |
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| 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
March 31, |
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Nine Months Ended
March 31, |
(In thousands) |
2020 |
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2019 |
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2020 |
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2019 |
Amortization expense - Cost of revenues |
$ |
36,850 |
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$ |
15,770 |
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$ |
108,835 |
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$ |
17,628 |
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Amortization expense - Selling, general and administrative |
17,724 |
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|
10,086 |
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|
60,237 |
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|
10,973 |
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Amortization expense - Research and development |
31 |
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|
12 |
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|
193 |
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|
12 |
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Total |
$ |
54,605 |
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$ |
25,868 |
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$ |
169,265 |
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$ |
28,613 |
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| 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:
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Fiscal year ending June 30: |
Amortization
(In thousands)
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2020 (remaining three months) |
$ |
51,137 |
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2021 |
196,847 |
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2022 |
194,269 |
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2023 |
193,177 |
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2024 |
190,660 |
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2025 and thereafter |
436,019 |
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Total |
$ |
1,262,109 |
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