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 |
|
|