XML 36 R14.htm IDEA: XBRL DOCUMENT
v3.20.4

Goodwill and Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2020
Goodwill and Intangible Assets |
Goodwill and Intangible Assets | Note 7 — Goodwill and Intangible Assets ​ Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. The following table presents the changes in goodwill balances during the years indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Gross carrying |  | Accumulated |  | ​
​ | ​ | amount | ​ | impairment | ​ | Net amount
​ |  | (in thousands)
Balance at December 31, 2018 | ​ | $ | 430,331 | ​ | $ | 246,029 | ​ | $ | 184,302
Allocated to Assets held for sale | ​ | ​ | — | ​ | ​ | 2,359 | ​ | ​ | (2,359)
Balance at December 31, 2019 and 2020 | ​ | ​ | 430,331 | ​ | ​ | 248,388 | ​ | ​ | 181,943
​ The Company performs its annual goodwill impairment test at the beginning of the fourth quarter each year. As the Company maintains a single goodwill reporting unit, it determines the fair value of its reporting unit based upon the Company’s adjusted market capitalization. The annual test performed at the beginning of the fourth quarter of fiscal 2018, 2019, and 2020 did not result in any potential impairment as the fair value of the reporting unit was determined to exceed the carrying amount of the reporting unit. ​ As a result of a significant decline in the Company’s stock price during the fourth quarter of 2018, the Company concluded it was appropriate to perform an interim goodwill impairment test as of the end of fiscal 2018. The fair value of its reporting unit, as calculated using the adjusted market capitalization approach, was determined to be below the carrying value of the reporting unit, and the Company recorded an impairment charge equal to the excess of carrying value over fair value, or $122.8 million, for the year ended December 31, 2018. The impairment charge is included in “Asset impairment” in the Consolidated Statements of Operations. The valuation of goodwill will continue to be subject to changes in the Company’s market capitalization and observable market control premiums. This analysis is sensitive to changes in the Company’s stock price and absent other qualitative factors, the Company may be required to record additional goodwill impairment charges in future periods if the stock price declines and remains depressed for an extended period of time. ​ The components of purchased intangible assets were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | December 31, 2020 | ​ | December 31, 2019
​ | ​ | Average | ​ | ​ | ​ | ​ | Accumulated | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Accumulated | ​ | ​ | ​
​ |  | Remaining |  | Gross |  | Amortization |  | ​ |  | Gross |  | Amortization |  | ​
​ | ​ | Amortization | ​ | Carrying | ​ | and | ​ | Net | ​ | Carrying | ​ | and | ​ | Net
​ | ​ | Period | ​ | Amount | ​ | Impairment | ​ | Amount | ​ | Amount | ​ | Impairment | ​ | Amount
​ | ​ | (in years) | ​ | (in thousands)
Technology | ​ | 4.6 | ​ | $ | 327,908 | ​ | $ | 302,358 | ​ | $ | 25,550 | ​ | $ | 327,908 | ​ | $ | 291,766 | ​ | $ | 36,142
Customer relationships | ​ | 8.2 | ​ | ​ | 146,465 | ​ | ​ | 130,131 | ​ | ​ | 16,334 | ​ | ​ | 146,465 | ​ | ​ | 126,764 | ​ | ​ | 19,701
Trademarks and tradenames | ​ | 3.5 | ​ | ​ | 30,910 | ​ | ​ | 26,614 | ​ | ​ | 4,296 | ​ | ​ | 30,910 | ​ | ​ | 25,256 | ​ | ​ | 5,654
Other | ​ | 0.8 | ​ |  | 3,686 | ​ |  | 3,681 | ​ |  | 5 | ​ |  | 3,686 | ​ |  | 3,665 | ​ |  | 21
Total | ​ | 5.8 | ​ | $ | 508,969 | ​ | $ | 462,784 | ​ | $ | 46,185 | ​ | $ | 508,969 | ​ | $ | 447,451 | ​ | $ | 61,518
​ Other intangible assets primarily consist of patents, licenses, and backlog. ​ During the second quarter of 2018, the Company lowered its projected results for the Ultratech asset group. The reduced projections were based on lower than expected unit volume of certain smartphones, which incorporate advanced packaging methods such as fan-out wafer level packaging (“FOWLP”), and a delay in the adoption of FOWLP advanced packaging by other electronics manufacturers, both of which slowed orders and reduced revenue projections for the Company’s advanced packaging lithography systems. In addition, there had been a delay in the build out of 28nm facilities by companies in China who were expected to purchase the Company’s laser spike anneal systems. Taken together, the reduced projections identified during the second quarter of 2018 required the Company to assess the Ultratech asset group for impairment. As a result of the analysis, which included projected cash flows that required the use of unobservable inputs, the Company recorded non-cash impairment charges of $216.4 million and $35.9 million related to definite-lived intangible assets and in-process research and development assets, respectively, during the second quarter of 2018. The impairment charge is included in “Asset impairment” in the Consolidated Statement of Operations. Subsequently, certain in-process research and development projects were completed and moved to the “Technology” line in the above table. ​ Based on the intangible assets recorded at December 31, 2020, and assuming no subsequent additions to or impairment of the underlying assets, the remaining estimated annual amortization expense, is expected to be as follows: ​
​ | ​ | ​ | ​
​ | ​ | Amortization
​ |  | (in thousands)
2021 | ​ | $ | 12,280
2022 | ​ |  | 10,018
2023 | ​ |  | 8,347
2024 | ​ |  | 6,708
2025 | ​ |  | 3,136
Thereafter | ​ | ​ | 5,696
Total | ​ | $ | 46,185
​

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 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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration