Annual report pursuant to Section 13 and 15(d)

GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables)

v3.20.2
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables)
 12 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Rollforward The following table presents goodwill carrying value and the movements by reporting unit during the fiscal years ended June 30, 2020 and 2019(1):
(In thousands) Wafer Inspection Patterning GSS  SPC Others Wafer Inspection and Patterning Specialty Semiconductor Process PCB and Display Component Inspection Total
Balance as of June 30, 2018 $ 281,005    $ 53,255    $ 8,039    $ 12,399    $ —    $ —    $ —    $ —    $ 354,698   
Acquired goodwill —    26,362    17,869    1,176    —    796,442    977,102    —    1,818,951   
Goodwill adjustments —    —    —    —    —    25,400    12,816    —    38,216   
Reallocation due to change in segments (281,005)   (79,617)   —    (13,575)   360,622    —    —    13,575    —   
Foreign currency adjustment —    —    —    —    (7)   —    —    —    (7)  
Balance as of June 30, 2019 —    —    25,908    —    360,615    821,842    989,918    13,575    2,211,858   
Acquired goodwill —    —    —    —    56,180    —    —    —    56,180   
Goodwill adjustments —    —    —    —    166    4,195    29,773    —    34,134   
Goodwill impairment —    —    —    —    —    (144,179)   (112,470)   —    (256,649)  
Foreign currency adjustment —    —    —    (121)   —    —    —    (121)  
Balance as of June 30, 2020 $ —    $ —    $ 25,908    $ —    $ 416,840    $ 681,858    $ 907,221    $ 13,575    $ 2,045,402   
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(1)No goodwill was assigned to the Other reporting unit, and accordingly is not disclosed in the table above.
Components of Purchased Intangible Assets
The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands) As of June 30, 2020 As of June 30, 2019
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    $ 342,623    $ 927,260    $ 1,224,629    $ 196,582    $ 1,028,047   
Customer relationships
4-9
 305,817    98,754    207,063    297,250    66,471    230,779   
Trade name/trademark
4-7
117,383    39,216    78,167    114,573    25,052    89,521   
Backlog and other
<1-9
 50,404    47,215    3,189    43,969    19,146    24,823   
Intangible assets subject to amortization 1,743,487    527,808    1,215,679    1,680,421    307,251    1,373,170   
In-process research and development 175,834    100    175,734    187,500    —    187,500   
Total $ 1,919,321    $ 527,908    $ 1,391,413    $ 1,867,921    $ 307,251    $ 1,560,670   
Amortization Expense for Purchased Intangible Assets
Amortization expense for purchased intangible assets for the periods indicated below was as follows:
Year ended June 30,
(In thousands) 2020 2019
Amortization expense- Cost of revenues $ 145,823    $ 52,387   
Amortization expense- Selling, general and administrative 74,532    34,992   
Amortization expense- Research and development 224    13   
Total $ 220,579    $ 87,392   
Remaining Estimated Amortization Expense
Based on the purchased intangible assets' gross carrying value recorded as of June 30, 2020, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30: Amortization
(In thousands)
2021 $ 197,817   
2022 195,239   
2023 194,147   
2024 191,630   
2025 179,421   
Thereafter 257,425   
Total $ 1,215,679