Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables)

v3.20.4
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables)
6 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill Balances The following table presents changes in goodwill carrying value during the six months ended December 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, 2020 $ 416,840  $ 25,908  $ 681,858  $ 907,221  $ 13,575  $ 2,045,402 
Foreign currency adjustments 43  —  —  —  —  43 
Balance as of December 31, 2020 $ 416,883  $ 25,908  $ 681,858  $ 907,221  $ 13,575  $ 2,045,445 
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(1)No goodwill was assigned to the Other reporting unit, and accordingly it was excluded from the table above.
Schedule of Components of Purchased Intangible Assets
The components of purchased intangible assets as of the dates indicated below were as follows:
As of As of
(In thousands)   December 31, 2020 June 30, 2020
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
$ 1,373,458  $ 418,402  $ 955,056  $ 1,269,883  $ 342,623  $ 927,260 
Customer relationships
4-9
305,817  115,070  190,747  305,817  98,754  207,063 
Trade name / Trademark
4-7
117,383  46,355  71,028  117,383  39,216  78,167 
Backlog and other
<1-9
50,404  49,551  853  50,404  47,215  3,189 
Intangible assets subject to amortization 1,847,062  629,378  1,217,684  1,743,487  527,808  1,215,679 
In-process research and development 72,259  100  72,159  175,834  100  175,734 
Total $ 1,919,321  $ 629,478  $ 1,289,843  $ 1,919,321  $ 527,908  $ 1,391,413 
Schedule of Amortization Expense for Purchased Intangible Assets Amortization expense for purchased intangible assets for the periods indicated below was as follows:
Three Months Ended Six Months Ended
December 31, December 31,
(In thousands) 2020 2019 2020 2019
Amortization expense - Cost of revenues $ 38,738  $ 36,364  $ 75,778  $ 71,985 
Amortization expense - Selling, general and administrative 12,301  20,257  25,730  42,513 
Amortization expense - Research and development 31  131  62  162 
Total $ 51,070  $ 56,752  $ 101,570  $ 114,660 
Schedule of Remaining Estimated Amortization Expense
Based on the purchased intangible assets gross carrying amount recorded as of December 31, 2020, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30: Amortization (In thousands)
2021 (remaining six months) $ 104,418 
2022 208,186 
2023 207,094 
2024 204,577 
2025 192,368 
2026 and thereafter 301,041 
Total $ 1,217,684