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GOODWILL AND PURCHASED INTANGIBLE ASSETS | 6 Months Ended
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Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND PURCHASED INTANGIBLE ASSETS | GOODWILL AND PURCHASED INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in the current and prior quarters’ business combinations. We have four reportable segments and six operating segments. The operating segments are determined to be the same as reporting units. For additional details, refer to Note 18 “Segment Reporting and Geographic Information” to our Condensed Consolidated Financial Statements. The following table presents changes in goodwill carrying value during the six months ended December 31, 2021(1):
(In thousands) | Wafer Inspection and Patterning |  | Global Service and Support (“GSS”) |  | Specialty Semiconductor Process |  | PCB and Display |  | Component Inspection |  | Total
Balance as of June 30, 2021 | $ | 416,860 |  |  | $ | 25,908 |  |  | $ | 681,858 |  |  | $ | 872,971 |  |  | $ | 13,575 |  |  | $ | 2,011,172 |
Acquired goodwill | 31,621 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 31,621 |
Foreign currency adjustments | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |
Balance as of December 31, 2021 | $ | 448,482 |  |  | $ | 25,908 |  |  | $ | 681,858 |  |  | $ | 872,971 |  |  | $ | 13,575 |  |  | $ | 2,042,794 |
_________________ (1)No goodwill was assigned to the Other reporting unit and, accordingly, it was excluded from the table above. Goodwill is not subject to amortization but is tested for impairment annually during the third fiscal quarter, as well as whenever events or changes in circumstances indicate that the carrying value may not be recoverable. As of December 31, 2021, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to the annual assessment performed in the third quarter of the fiscal year ended June 30, 2021. There was no goodwill impairment as a result of that assessment. For additional details, refer to Note 7 “Goodwill and Purchased Intangible Assets” to our Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021. Purchased Intangible Assets The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands) |  |  | As of December 31, 2021 |  | As of June 30, 2021
Category | Range of Useful Lives (in years) |  | Gross Carrying Amount |  | Accumulated Amortization and Impairment |  | Net Amount |  | Gross Carrying Amount |  | Accumulated Amortization and Impairment |  | Net Amount
Existing technology | 4-8 |  | $ | 1,400,191 |  |  | $ | 581,249 |  |  | $ | 818,942 |  |  | $ | 1,382,612 |  |  | $ | 499,219 |  |  | $ | 883,393 |
Customer relationships | 4-9 |  | 313,317 |  |  | 148,452 |  |  | 164,865 |  |  | 305,817 |  |  | 131,386 |  |  | 174,431 |
Trade name / Trademark | 4-7 |  | 117,983 |  |  | 60,707 |  |  | 57,276 |  |  | 117,383 |  |  | 53,493 |  |  | 63,890 |
Backlog and other | <1-9 |  | 52,836 |  |  | 50,522 |  |  | 2,314 |  |  | 50,403 |  |  | 49,962 |  |  | 441 |
Intangible assets subject to amortization |  |  | 1,884,327 |  |  | 840,930 |  |  | 1,043,397 |  |  | 1,856,215 |  |  | 734,060 |  |  | 1,122,155 |
In-process research and development |  |  | 67,656 |  |  | 6,062 |  |  | 61,594 |  |  | 63,256 |  |  | 100 |  |  | 63,156 |
Total |  |  | $ | 1,951,983 |  |  | $ | 846,992 |  |  | $ | 1,104,991 |  |  | $ | 1,919,471 |  |  | $ | 734,160 |  |  | $ | 1,185,311 |
Purchased intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be fully recoverable. The impairment indicator primarily includes the declines in our operating cash flows from the use of these assets. If the impairment indicators are present, we are required to perform a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to these long-lived assets to their carrying value. As of December 31, 2021, there were no impairment indicators for purchased intangible assets. Amortization expense for purchased intangible assets for the periods indicated below was as follows:
| Three Months Ended December 31, |  | Six Months Ended December 31,
(In thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Amortization expense - Costs of revenues | $ | 41,124 |  |  | $ | 38,738 |  |  | $ | 82,248 |  |  | $ | 75,778 |
Amortization expense - SG&A | 12,389 |  |  | 12,301 |  |  | 24,778 |  |  | 25,730 |
Amortization expense - Research and development | 31 |  |  | 31 |  |  | 62 |  |  | 62 |
Total | $ | 53,544 |  |  | $ | 51,070 |  |  | $ | 107,088 |  |  | $ | 101,570 |
Based on the purchased intangible assets gross carrying amount recorded as of December 31, 2021, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30: | Amortization (In thousands)
2022 (remaining six months) | $ | 107,197 |
2023 | 212,659 |
2024 | 209,665 |
2025 | 197,596 |
2026 | 182,271 |
2027 and thereafter | 134,009 |
Total | $ | 1,043,397 |

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