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Goodwill and Acquired Intangible Assets
 9 Months Ended
Oct. 01, 2023
Goodwill and Acquired Intangible Assets

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 nine months ended October 1, 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 nine months ended October 1, 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

 

 

(2,079

)

 

 

—

 

 

 

24

 

 

 

—

 

 

 

(2,055

)

Balance at October 1, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

381,087

 

 

 

361,819

 

 

 

262,101

 

 

 

158,699

 

 

 

1,163,706

 

Accumulated impairment losses

 

 

—

 

 

 

(353,843

)

 

 

(260,540

)

 

 

(148,183

)

 

 

(762,566

)

Total Goodwill

 

$

381,087

 

 

$

7,976

 

 

$

1,561

 

 

$

10,516

 

 

$

401,140

 

 

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 October 1, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Developed technology

 

$

267,708

 

 

$

(240,155

)

 

$

(5,927

)

 

$

21,626

 

Customer relationships

 

 

52,109

 

 

 

(47,276

)

 

 

190

 

 

 

5,023

 

Tradenames and trademarks

 

 

59,007

 

 

 

(44,966

)

 

 

(1,525

)

 

 

12,516

 

Total intangible assets

 

$

378,824

 

 

$

(332,397

)

 

$

(7,262

)

 

$

39,165

 

Balance at 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 $4.7 million and $14.3 million, respectively, for the three and nine months ended October 1, 2023, and $4.7 million and $14.7 million, respectively, for the three and nine months ended October 2, 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

 

$

4,630

 

2024

 

 

18,469

 

2025

 

 

11,202

 

2026

 

 

2,343

 

2027

 

 

1,127

 

Thereafter

 

 

1,394