Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables)

v3.22.2.2
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables)
 3 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill Balances The following table presents changes in goodwill carrying value during the three months ended September 30, 2022:
(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, 2022 $ 725,737  $ 25,908  $ 681,858  $ 872,971  $ 13,575  $ 2,320,049 
Acquired goodwill 6,776  —  —  —  —  6,776 
Goodwill disposal from sale of business (1)
—  —  —  (42,622) —  (42,622)
Goodwill adjustments (5,337) —  —  —  —  (5,337)
Foreign currency adjustments (39) —  —  —  —  (39)
Balance as of September 30, 2022 $ 727,137  $ 25,908  $ 681,858  $ 830,349  $ 13,575  $ 2,278,827 
(1)    Refer to the “Business Dispositions” section of Note 6 “Business Combinations and Dispositions” for more information on the sale of Orbograph.
Schedule of Components of Purchased Intangible Assets
The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands)   As of September 30, 2022 As of June 30, 2022
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
 $ 1,536,826  $ 705,476  $ 831,350  $ 1,523,691  $ 668,175  $ 855,516 
Customer relationships
4-9
 358,567  175,260  183,307  366,567  167,819  198,748 
Trade name / Trademark
4-7
 116,583  67,487  49,096  121,083  68,194  52,889 
Order backlog and other
<1-9
 85,836  64,248  21,588  87,836  58,970  28,866 
Intangible assets subject to amortization(1)
2,097,812  1,012,471  1,085,341  2,099,177  963,158  1,136,019 
In-process research and development 61,322  15,218  46,104  64,457  6,062  58,395 
Total $ 2,159,134  $ 1,027,689  $ 1,131,445  $ 2,163,634  $ 969,220  $ 1,194,414 
(1)    The disposition of Orbograph during the three months ended September 30, 2022, resulted in a decrease in the gross amount of intangible assets subject to amortization of $34.5 million, a decrease in accumulated amortization of $15.9 million, and a decrease in the net amount of $18.6 million. Refer to the “Business Dispositions” section of Note 6 “Business Combinations and Dispositions” for more information on the sale of Orbograph.
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 September 30,
(In thousands) 2022 2021
Amortization expense - Costs of revenues $ 45,066  $ 41,124 
Amortization expense - SG&A 20,128  12,389 
Amortization expense - Research and development 31  31 
Total $ 65,225  $ 53,544 
Schedule of Remaining Estimated Amortization Expense
Based on the purchased intangible assets gross carrying amount recorded as of September 30, 2022, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30: Amortization (In thousands)
2023 (remaining nine months) $ 195,393 
2024 238,575 
2025 222,123 
2026 206,211 
2027 129,630 
2028 and thereafter 93,409 
Total $ 1,085,341