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Goodwill and Acquired Intangible Assets | 6 Months Ended
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Jun. 30, 2019
Goodwill and Intangible Assets | O. GOODWILL AND ACQUIRED INTANGIBLE ASSETS Goodwill Teradyne performs its annual goodwill impairment test as required under the provisions of ASC 350-10, “Intangibles—Goodwill and Other” on December 31 of each fiscal year unless interim indicators of impairment exist. Goodwill is considered impaired when the net book value of a reporting unit exceeds its estimated fair value. The changes in the carrying amount of goodwill by reportable segments for the six months ended June 30, 2019, were as follows:
|  | Industrial Automation |  |  | System Test |  |  | Wireless Test |  |  | Semiconductor Test |  |  | Total |
|  | (in thousands) |
Balance at December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 363,358 |  |  | $ | 158,699 |  |  | $ | 361,819 |  |  | $ | 260,540 |  |  | $ | 1,144,416 |
Accumulated impairment losses |  |  | — |  |  |  | (148,183 | ) |  |  | (353,843 | ) |  |  | (260,540 | ) |  |  | (762,566 | )
|  |  | 363,358 |  |  |  | 10,516 |  |  |  | 7,976 |  |  |  | — |  |  |  | 381,850 |
Lemsys acquisition |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,428 |  |  |  | 1,428 |
Foreign currency translation adjustment |  |  | 626 |  |  |  | — |  |  |  | — |  |  |  | 32 |  |  |  | 658 |
Balance at June 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 363,984 |  |  |  | 158,699 |  |  |  | 361,819 |  |  |  | 262,000 |  |  |  | 1,146,502 |
Accumulated impairment losses |  |  | — |  |  |  | (148,183 | ) |  |  | (353,843 | ) |  |  | (260,540 | ) |  |  | (762,566 | )
|  | $ | 363,984 |  |  | $ | 10,516 |  |  | $ | 7,976 |  |  | $ | 1,460 |  |  | $ | 383,936 |
Intangible Assets Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet:
|  | June 30, 2019 |
|  | Gross Carrying Amount (1)(2) |  |  | Accumulated Amortization (2) |  |  | Foreign Currency Translation Adjustment |  |  | Net Carrying Amount |
|  | (in thousands) |
Developed technology |  | $ | 337,198 |  |  | $ | (265,951 | ) |  | $ | (4,035 | ) |  | $ | 67,212 |
Customer relationships |  |  | 100,313 |  |  |  | (87,496 | ) |  |  | (285 | ) |  |  | 12,532 |
Tradenames and trademarks |  |  | 64,670 |  |  |  | (34,131 | ) |  |  | (789 | ) |  |  | 29,750 |
Total intangible assets |  | $ | 502,181 |  |  | $ | (387,578 | ) |  | $ | (5,109 | ) |  | $ | 109,494 |
|  | December 31, 2018 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Foreign Currency Translation Adjustment |  |  | Net Carrying Amount |
|  | (in thousands) |
Developed technology |  | $ | 336,308 |  |  | $ | (252,080 | ) |  | $ | (4,079 | ) |  | $ | 80,149 |
Customer relationships |  |  | 97,153 |  |  |  | (83,448 | ) |  |  | (340 | ) |  |  | 13,365 |
Tradenames and trademarks |  |  | 64,420 |  |  |  | (31,653 | ) |  |  | (799 | ) |  |  | 31,968 |
Non-compete agreement |  |  | 320 |  |  |  | (320 | ) |  |  | — |  |  |  | — |
Backlog |  |  | 30 |  |  |  | (30 | ) |  |  | — |  |  |  | — |
Total intangible assets |  | $ | 498,231 |  |  | $ | (367,531 | ) |  | $ | (5,218 | ) |  | $ | 125,482 |
(1) | Includes $4.6 million of intangible assets from Lemsys acquisition.
(2) | $0.7 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization.
Aggregate intangible asset amortization expense was $10.1 million and $20.7 million, respectively, for the three and six months ended June 30, 2019 and $9.8 million and $17.5 million, respectively, for the three and six months ended July 1, 2018. Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows:
Year |  | Amortization Expense |
|  | (in thousands) |
2019 (remainder) |  |  | 18,745 |
2020 |  |  | 25,037 |
2021 |  |  | 14,778 |
2022 |  |  | 13,885 |
2023 |  |  | 13,410 |
Thereafter |  |  | 23,639 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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