Goodwill and Acquired Intangible Assets

6 Months Ended

Jul. 02, 2023

L. 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. In the six months ended July 2, 2023, there were no interim indicators of impairment. 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 July 2, 2023, were as follows:


	Robotics		Wireless Test			Semiconductor Test			System Test			Total

	(in thousands)
Balance at December 31, 2022
Goodwill	$	383,166	$	361,819		$	262,077		$	158,699		$	1,165,761
Accumulated impairment losses		—		(353,843	)		(260,540	)		(148,183	)		(762,566	)

Total Goodwill		383,166		7,976			1,537			10,516			403,195

Foreign currency translation adjustment		8,857		—			58			—			8,915

Balance at July 2, 2023
Goodwill		392,023		361,819			262,135			158,699			1,174,676
Accumulated impairment losses		—		(353,843	)		(260,540	)		(148,183	)		(762,566	)

Total Goodwill	$	392,023	$	7,976		$	1,595		$	10,516		$	412,110

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 (1)		Accumulated Amortization (1)			Foreign Currency Translation Adjustment			Net Carrying Amount

	(in thousands)
Balance at July 2, 2023
Developed technology	$	267,708	$	(237,078	)	$	(5,444	)	$	25,186
Customer relationships		52,109		(46,699	)		200			5,610
Tradenames and trademarks		59,007		(43,904	)		(1,288	)		13,815

Total intangible assets	$	378,824	$	(327,681	)	$	(6,532	)	$	44,611

Balance, December 31, 2022
Developed technology	$	270,967	$	(234,208	)	$	(5,935	)	$	30,824
Customer relationships		57,739		(51,186	)		172			6,725
Tradenames and trademarks		59,387		(41,930	)		(1,528	)		15,929

Total intangible assets	$	388,093	$	(327,324	)	$	(7,291	)	$	53,478

(1)	In 2023, $9.3 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 $4.8 million and $9.6 million, respectively, for the three and six months ended July 2, 2023

and $4.9 million and $9.9 million, respectively

for the three and six months ended July 3, 2022.

Estimated intangible asset amortization expense for each of the five succeeding fiscal years and thereafter is as follows:


Year	Amortization Expense
	(in thousands)
2023	$	9,443
2024		18,834
2025		11,352
2026		2,379
2027		1,162
Thereafter		1,441