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Goodwill and Acquired Intangible Assets
 6 Months Ended
Jun. 28, 2020
Goodwill and Intangible Assets
M. 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 28, 2020, were as follows:
 
    
Industrial

Automation
     
System

Test
     
Wireless

Test
     
Semiconductor

Test
     
Total
  
    
(in thousands)
  
Balance at December 31, 2019
               
Goodwill
    $ 396,483      $ 158,699      $ 361,819      $ 261,996      $ 1,178,997  
Accumulated impairment losses
      —          (148,183 )       (353,843 )       (260,540 )       (762,566 ) 
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
     396,483        10,516        7,976        1,456        416,431  
AutoGuide acquisition
      (149 )       —          —          —          (149 ) 
Foreign currency translation adjustment
      5,671        —          —          50        5,721  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Balance at June 28, 2020
               
Goodwill
      402,005        158,699        361,819        262,046        1,184,569  
Accumulated impairment losses
      —          (148,183 )       (353,843 )       (260,540 )       (762,566 ) 
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 402,005      $ 10,516      $ 7,976      $ 1,506      $ 422,003  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
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:
 
    
Gross

Carrying

Amount
     
Accumulated

Amortization
     
Foreign
Currency
Translation
Adjustment
     
Net

Carrying

Amount
  
    
(in thousands)
  
Balance at June 28, 2020
            
Developed technology
    $ 361,787      $ (292,394 )     $ (5,095 )     $ 64,298  
Customer relationships
      75,669        (61,730 )       (295 )       13,644  
Tradenames and trademarks
      70,120        (39,457 )       (1,042 )       29,621  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total intangible assets
    $ 507,576      $ (393,581 )     $ (6,432 )     $ 107,563  
  
 
 
     
 
 
     
 
 
     
 
 
  
Balance at December 31, 2019
            
Developed technology
    $ 361,787      $ (279,000 )     $ (5,709 )     $ 77,078  
Customer relationships
      75,669        (59,077 )       (455 )       16,137  
Tradenames and trademarks
      70,120        (36,671 )       (1,184 )       32,265  
Backlog
      260        (260 )       —          —    
  
 
 
     
 
 
     
 
 
     
 
 
  
Total intangible assets
    $ 507,836      $ (375,008 )     $ (7,348 )     $ 125,480  
  
 
 
     
 
 
     
 
 
     
 
 
  
Aggregate intangible asset amortization expense was $8.9 million and $18.8 million, respectively, for the three and six months ended June 28, 2020 and $10.1 million and $20.7 million, respectively, for the three and six months ended June 30, 2019.
Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows:
 
Year
   
Amortization Expense
  
    
(in thousands)
  
2020 (remainder)
      11,721  
2021
      20,804  
2022
      19,911  
2023
      19,430  
2024
      19,123  
Thereafter
      16,574