| Schedule of Goodwill Balances |
The following table presents changes in goodwill carrying value during the three months ended September 30, 2021(1):
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| (In thousands) |
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, 2021 |
$ |
416,860 |
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$ |
25,908 |
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$ |
681,858 |
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$ |
872,971 |
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$ |
13,575 |
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$ |
2,011,172 |
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| Acquired goodwill |
30,164 |
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— |
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— |
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— |
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— |
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30,164 |
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| Foreign currency adjustments |
2 |
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— |
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— |
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— |
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— |
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2 |
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| Balance as of September 30, 2021 |
$ |
447,026 |
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$ |
25,908 |
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$ |
681,858 |
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$ |
872,971 |
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$ |
13,575 |
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$ |
2,041,338 |
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_________________
(1)No goodwill was assigned to the Other reporting unit and, accordingly, it was excluded from the table above.
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| Schedule of 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 September 30, 2021 |
|
As of June 30, 2021 |
| 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 |
|
$ |
1,400,191 |
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|
$ |
540,125 |
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|
$ |
860,066 |
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$ |
1,382,612 |
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$ |
499,219 |
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$ |
883,393 |
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| Customer relationships |
4-9 |
|
313,317 |
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|
139,919 |
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|
173,398 |
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|
305,817 |
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|
131,386 |
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|
174,431 |
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| Trade name / Trademark |
4-7 |
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117,983 |
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57,100 |
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60,883 |
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117,383 |
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53,493 |
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|
63,890 |
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| Backlog and other |
<1-9 |
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51,836 |
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|
50,242 |
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|
1,594 |
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50,403 |
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|
49,962 |
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|
441 |
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| Intangible assets subject to amortization |
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1,883,327 |
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|
787,386 |
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1,095,941 |
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1,856,215 |
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734,060 |
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1,122,155 |
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| In-process research and development |
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|
67,656 |
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|
6,062 |
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61,594 |
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|
63,256 |
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|
100 |
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|
63,156 |
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| Total |
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$ |
1,950,983 |
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$ |
793,448 |
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$ |
1,157,535 |
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$ |
1,919,471 |
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$ |
734,160 |
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$ |
1,185,311 |
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| Schedule of 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 September 30, |
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| (In thousands) |
2021 |
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2020 |
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| Amortization expense - Costs of revenues |
$ |
41,124 |
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$ |
37,040 |
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| Amortization expense - Selling, general and administrative |
12,389 |
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|
13,429 |
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| Amortization expense - Research and development |
31 |
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31 |
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| Total |
$ |
53,544 |
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$ |
50,500 |
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| Schedule of Remaining Estimated Amortization Expense |
Based on the purchased intangible assets gross carrying amount recorded as of September 30, 2021, the remaining estimated annual amortization expense is expected to be as follows:
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| Fiscal year ending June 30: |
Amortization (In thousands) |
| 2022 (remaining nine months) |
$ |
160,633 |
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| 2023 |
212,609 |
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| 2024 |
209,615 |
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| 2025 |
197,396 |
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| 2026 |
182,071 |
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| 2027 and thereafter |
133,617 |
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| Total |
$ |
1,095,941 |
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