Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables)

v3.22.4
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables)
 6 Months Ended
Dec. 31, 2022
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, 2022:
(In thousands) Wafer Inspection and Patterning
Global Service and Support (“GSS”)
Specialty Semiconductor Process Printed Circuit Board (“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 (57) —  —  —  —  (57)
Balance as of December 31, 2022 $ 727,119  $ 25,908  $ 681,858  $ 830,349  $ 13,575  $ 2,278,809 
(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 December 31, 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  $ 750,923  $ 785,903  $ 1,523,691  $ 668,175  $ 855,516 
Customer relationships
4-9
 358,567  185,462  173,105  366,567  167,819  198,748 
Trade name / Trademark
4-7
 116,583  71,281  45,302  121,083  68,194  52,889 
Order backlog and other
<1-9
 85,836  70,411  15,425  87,836  58,970  28,866 
Intangible assets subject to amortization(1)
2,097,812  1,078,077  1,019,735  2,099,177  963,158  1,136,019 
In-process research and development 61,322  15,966  45,356  64,457  6,062  58,395 
Total $ 2,159,134  $ 1,094,043  $ 1,065,091  $ 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 December 31, Six Months Ended December 31,
(In thousands) 2022 2021 2022 2021
Amortization expense - Costs of revenues $ 45,446  $ 41,124  $ 90,512  $ 82,248 
Amortization expense - SG&A 20,128  12,389  40,256  24,778 
Amortization expense - Research and development 31  31  62  62 
Total $ 65,605  $ 53,544  $ 130,830  $ 107,088 
Schedule of Remaining Estimated Amortization Expense
Based on the purchased intangible assets gross carrying amount recorded as of December 31, 2022, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30: Amortization (In thousands)
2023 (remaining six months) $ 129,787 
2024 238,575 
2025 222,123 
2026 206,211 
2027 129,630 
2028 and thereafter 93,409 
Total $ 1,019,735