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Goodwill and Acquired Intangible Assets | 3 Months Ended
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Apr. 04, 2021
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 three months ended April 4, 2021, were as follows:
|  | Industrial Automation |  |  | System Test |  |  | Wireless Test |  |  | Semiconductor Test |  |  | Total |
|  | (in thousands) |
Balance at December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 433,752 |  |  | $ | 158,699 |  |  | $ | 361,819 |  |  | $ | 262,155 |  |  | $ | 1,216,425 |
Accumulated impairment losses |  |  | — |  |  |  | (148,183 | ) |  |  | (353,843 | ) |  |  | (260,540 | ) |  |  | (762,566 | )
|  |  | 433,752 |  |  |  | 10,516 |  |  |  | 7,976 |  |  |  | 1,615 |  |  |  | 453,859 |
Foreign currency translation adjustment |  |  | (16,156 | ) |  |  | — |  |  |  | — |  |  |  | (102 | ) |  |  | (16,258 | )
Balance at April 4, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 417,596 |  |  |  | 158,699 |  |  |  | 361,819 |  |  |  | 262,053 |  |  |  | 1,200,167 |
Accumulated impairment losses |  |  | — |  |  |  | (148,183 | ) |  |  | (353,843 | ) |  |  | (260,540 | ) |  |  | (762,566 | )
|  | $ | 417,596 |  |  | $ | 10,516 |  |  | $ | 7,976 |  |  | $ | 1,513 |  |  | $ | 437,601 |
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 April 4, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Developed technology |  | $ | 272,547 |  |  | $ | (213,459 | ) |  | $ | (3,198 | ) |  | $ | 55,890 |
Customer relationships |  |  | 57,739 |  |  |  | (47,209 | ) |  |  | 150 |  |  |  | 10,680 |
Tradenames and trademarks |  |  | 70,120 |  |  |  | (43,716 | ) |  |  | (124 | ) |  |  | 26,280 |
Total intangible assets |  | $ | 400,406 |  |  | $ | (304,384 | ) |  | $ | (3,172 | ) |  | $ | 92,850 |
Balance, December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Developed technology |  | $ | 272,547 |  |  | $ | (210,479 | ) |  | $ | (1,610 | ) |  | $ | 60,458 |
Customer relationships |  |  | 66,239 |  |  |  | (54,524 | ) |  |  | 305 |  |  |  | 12,020 |
Tradenames and trademarks |  |  | 70,120 |  |  |  | (42,344 | ) |  |  | 685 |  |  |  | 28,461 |
Total intangible assets |  | $ | 408,906 |  |  | $ | (307,347 | ) |  | $ | (620 | ) |  | $ | 100,939 |
Aggregate intangible asset amortization expense for the three months ended April 4, 2021 and March 29, 2020 was $5.5 million and $9.9 million, respectively. Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows:
Year |  | Amortization Expense |
|  | (in thousands) |
2021 (remainder) |  |  | 15,896 |
2022 |  |  | 20,423 |
2023 |  |  | 19,941 |
2024 |  |  | 19,634 |
2025 |  |  | 11,699 |
Thereafter |  |  | 5,257 |

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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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Namespace Prefix: | us-gaap_
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Period Type: | duration