Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Purchased Intangible Assets

v2.4.0.8
Goodwill and Purchased Intangible Assets
3 Months Ended
Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Purchased Intangible Assets
GOODWILL AND PURCHASED INTANGIBLE ASSETS
Goodwill
The following table presents goodwill balances as of the dates indicated below:
(In thousands)
As of
September 30, 2013
 
As of
June 30, 2013
Gross goodwill balance
$
604,126

 
$
604,205

Accumulated impairment losses
(277,570
)
 
(277,570
)
Net goodwill balance
$
326,556

 
$
326,635


The changes in the gross goodwill balance since June 30, 2013 resulted from foreign currency translation adjustments.
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination.
The Company has four reporting units: Defect Inspection, Metrology, Service, and Software and Other. As of September 30, 2013, substantially all of the goodwill balance resided in the Defect Inspection reporting unit.
The Company performed a qualitative assessment of the goodwill by reporting unit as of November 30, 2012 during the three months ended December 31, 2012 and concluded that it was more likely than not that the fair value of each of the reporting units exceeded its carrying amount. As of December 31, 2012, the Company's assessment indicated that goodwill in the reporting units was not impaired. There have been no significant events or circumstances affecting the valuation of goodwill subsequent to the qualitative assessment performed in the second quarter of the fiscal year ended June 30, 2013. The next annual assessment of the goodwill by reporting unit will be performed in the second quarter of the fiscal year ending June 30, 2014.
Purchased Intangible Assets
The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands)
 
 
As of
September 30, 2013
 
As of
June 30, 2013
Category
Range of
Useful Lives
 
Gross
Carrying
Amount
 
Accumulated
Amortization
and
Impairment
 
Net
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
and
Impairment
 
Net
Amount
Existing technology
4-7 years
 
$
133,659

 
$
120,977

 
$
12,682

 
$
133,659

 
$
119,106

 
$
14,553

Patents
6-13 years
 
57,648

 
51,904

 
5,744

 
57,648

 
51,068

 
6,580

Trade name/Trademark
4-10 years
 
19,893

 
16,303

 
3,590

 
19,893

 
15,928

 
3,965

Customer relationships
6-7 years
 
54,680

 
46,674

 
8,006

 
54,680

 
45,263

 
9,417

Other
0-1 year
 
16,200

 
16,200

 

 
16,200

 
16,200

 

Total
 
 
$
282,080

 
$
252,058

 
$
30,022

 
$
282,080

 
$
247,565

 
$
34,515


Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.
For the three months ended September 30, 2013 and 2012, amortization expense for other intangible assets was $4.5 million and $7.2 million, respectively. Based on the intangible assets recorded as of September 30, 2013, and assuming no subsequent additions to, or impairment of, the underlying assets, the remaining estimated amortization expense is expected to be as follows:
Fiscal year ending June 30:
Amortization
(In thousands)
2014 (remaining 9 months)
$
10,875

2015
12,752

2016
5,564

2017
806

2018
25

Total
$
30,022