Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables)

v3.20.2
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables)
3 Months Ended
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill Balances The following table presents goodwill carrying value and the movements during the three months ended September 30, 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 30  —  —  —  —  30 
Balance as of September 30, 2020 $ 416,870  $ 25,908  $ 681,858  $ 907,221  $ 13,575  $ 2,045,432 
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(1)No goodwill was assigned to the Other reporting unit, and accordingly it was excluded in the table above.
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)   September 30, 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
$ 1,269,883  $ 379,663  $ 890,220  $ 1,269,883  $ 342,623  $ 927,260 
Customer relationships
4-9
305,817  106,912  198,905  305,817  98,754  207,063 
Trade name / Trademark
4-7
117,383  42,785  74,598  117,383  39,216  78,167 
Backlog and other
<1-9
50,404  48,948  1,456  50,404  47,215  3,189 
Intangible assets subject to amortization 1,743,487  578,308  1,165,179  1,743,487  527,808  1,215,679 
In-process research and development 175,834  100  175,734  175,834  100  175,734 
Total $ 1,919,321  $ 578,408  $ 1,340,913  $ 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
September 30,
(In thousands) 2020 2019
Amortization expense - Cost of revenues $ 37,040  $ 35,621 
Amortization expense - Selling, general and administrative 13,429  22,256 
Amortization expense - Research and development 31  31 
Total $ 50,500  $ 57,908 
Schedule of Remaining Estimated Amortization Expense
Based on the purchased intangible assets gross carrying amount recorded as of September 30, 2020, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30: Amortization (In thousands)
2021 (remaining nine months) $ 147,317 
2022 195,239 
2023 194,147 
2024 191,630 
2025 179,421 
2026 and thereafter 257,425 
Total $ 1,165,179