XML 44 R34.htm IDEA: XBRL DOCUMENT
v3.23.4

GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables) | 6 Months Ended
--- | ---
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Schedule of Goodwill Balances | The following table presents changes in goodwill carrying value by reporting unit during the six months ended December 31, 2023:
(In thousands) | Wafer Inspection and Patterning |  | Global Service and Support (“GSS”) |  | Specialty Semiconductor Process |  | PCB and Display |  | PCB |  | Display |  | Component Inspection |  | Total
Balances as of June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill | 1,004,700 |  |  | 25,908 |  |  | 826,037 |  |  | 942,819 |  |  | — |  |  | — |  |  | 13,575 |  |  | 2,813,039 |
Accumulated impairment losses | (277,570) |  |  | — |  |  | (144,179) |  |  | (112,470) |  |  | — |  |  | — |  |  | — |  |  | (534,219) |
| $ | 727,130 |  |  | $ | 25,908 |  |  | $ | 681,858 |  |  | $ | 830,349 |  |  | $ | — |  |  | $ | — |  |  | $ | 13,575 |  |  | $ | 2,278,820 |
Activity for the six months ended December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill impairment | — |  |  | — |  |  | — |  |  | (192,600) |  |  | — |  |  | — |  |  | — |  |  | (192,600) |
Reallocation due to change in reporting units | — |  |  | — |  |  | — |  |  | (637,749) |  |  | 567,275 |  |  | 70,474 |  |  | — |  |  | — |
Foreign currency adjustments | (16) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (16) |
Balances as of December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill | 1,004,684 |  |  | 25,908 |  |  | 826,037 |  |  | 305,070 |  |  | 567,275 |  |  | 70,474 |  |  | 13,575 |  |  | $ | 2,813,023 |
Accumulated impairment losses | (277,570) |  |  | — |  |  | (144,179) |  |  | (305,070) |  |  | — |  |  | — |  |  | — |  |  | (726,819) |
| $ | 727,114 |  |  | $ | 25,908 |  |  | $ | 681,858 |  |  | $ | — |  |  | $ | 567,275 |  |  | $ | 70,474 |  |  | $ | 13,575 |  |  | $ | 2,086,204 |
Schedule of Components of Purchased Intangible Assets | The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands) |  |  | As of December 31, 2023 |  | As of June 30, 2023
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 |  | $ | 1,552,074 |  |  | $ | 954,790 |  |  | $ | 597,284 |  |  | $ | 1,536,826 |  |  | $ | 841,815 |  |  | $ | 695,011 |
Customer relationships | 4-9 |  | 358,567 |  |  | 229,736 |  |  | 128,831 |  |  | 358,567 |  |  | 205,037 |  |  | 153,530 |
Trade name / Trademark | 4-7 |  | 119,083 |  |  | 89,770 |  |  | 29,313 |  |  | 116,583 |  |  | 78,749 |  |  | 37,834 |
Order backlog and other | <1-7 |  | 83,336 |  |  | 82,639 |  |  | 697 |  |  | 85,836 |  |  | 82,264 |  |  | 3,572 |
Intangible assets subject to amortization |  |  | 2,113,060 |  |  | 1,356,935 |  |  | 756,125 |  |  | 2,097,812 |  |  | 1,207,865 |  |  | 889,947 |
In-process research and development |  |  | 46,074 |  |  | 15,966 |  |  | 30,108 |  |  | 61,322 |  |  | 15,966 |  |  | 45,356 |
Total |  |  | $ | 2,159,134 |  |  | $ | 1,372,901 |  |  | $ | 786,233 |  |  | $ | 2,159,134 |  |  | $ | 1,223,831 |  |  | $ | 935,303 |
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. We identified an impairment indicator for the long-lived assets in our PCB and Display operating segment during the second quarter of fiscal 2024 due to the downward revision of financial outlook for the businesses as noted above. In connection with the evaluation of the goodwill impairment in the PCB and Display reporting unit, the Company assessed tangible and intangible assets for impairment prior to performing the goodwill impairment test. The Company first performed a recoverability test for each asset group identified in the PCB and Display operating segment by comparing projected undiscounted cash flows from the use and eventual disposition of each asset group to its carrying value. This test indicated that the undiscounted cash flows were not sufficient to recover the carrying value of the asset groups. We then compared the carrying value of the individual long-lived assets within those asset groups against their fair value in order to measure the impairment loss. Determining the fair value involved the use of significant estimates and assumptions, including revenue forecasts, terminal growth rate, tax rate and a weighted average cost of capital adjusted for company-specific risk.
Schedule of Amortization Expense 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) | 2023 |  | 2022 |  | 2023 |  | 2022
Amortization expense - Costs of revenues | $ | 46,087 |  |  | $ | 45,446 |  |  | $ | 92,175 |  |  | $ | 90,512 |
Amortization expense - SG&A | 13,279 |  |  | 20,128 |  |  | 30,495 |  |  | 40,256 |
Amortization expense - Research and development | — |  |  | 31 |  |  | — |  |  | 62 |
Total | $ | 59,366 |  |  | $ | 65,605 |  |  | $ | 122,670 |  |  | $ | 130,830 |
Schedule of Remaining Estimated Amortization Expense | Based on the purchased intangible assets gross carrying amount recorded as of December 31, 2023, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30: | Amortization (In thousands)
2024 (remaining six months) | $ | 113,610 |
2025 | 214,968 |
2026 | 199,055 |
2027 | 130,794 |
2028 | 49,027 |
2029 and thereafter | 48,671 |
Total | $ | 756,125 |

X
- Definition Tabular disclosure of amortization expense of assets, excluding financial assets, that lack physical substance, having a limited useful life. + References No definition available. + Details
Name: | us-gaap_FiniteLivedIntangibleAssetsAmortizationExpenseTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets, excluding financial assets and goodwill, lacking physical substance with a finite life, by either major class or business segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482665/350-30-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482665/350-30-50-2 + Details
Name: | us-gaap_ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 24 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482548/350-20-55-24 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-2 + Details
Name: | us-gaap_ScheduleOfGoodwillTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amount of amortization expense expected to be recorded in succeeding fiscal years for finite-lived intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482665/350-30-50-2 + Details
Name: | us-gaap_ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration