2.	Goodwill and Purchased Intangible Assets

Goodwill and Intangible Assets

Changes in the carrying value of goodwill during the year ended

December 28, 2019,

and the

three

-month period ended

March 28, 2020,

by segment, were as follows (

in thousands

	Semiconductor Test
	& Inspection			PCB Test			Total
Balance, December 30, 2018	$	220,808		$	21,319		$	242,127
Adjustments		2,117			(983	)		1,134
Impairments		(715	)		-			(715	)
Impact of currency exchange		(3,435	)		(442	)		(3,877	)
Balance, December 28, 2019		218,775			19,894			238,669
Impact of currency exchange		(575	)		(97	)		(672	)
Balance, March 28, 2020	$	218,200		$	19,797		$	237,997

Purchased intangible assets, subject to amortization are as follows (

in thousands

	March 28, 2020						December 28, 2019
					Remaining
					Weighted
					Average
	Gross				Amort.		Gross
	Carrying		Accum.		Period		Carrying		Accum.
	Amount		Amort.		(in years)		Amount		Amort.
Developed technology	$	228,061	$	57,557		6.4	$	227,619	$	49,805
Customer relationships		71,778		16,332		9.1		72,251		14,824
Trade names		22,704		4,443		9.3		22,612		3,892
Covenant not-to-compete		327		106		6.8		322		96
Total intangible assets	$	322,870	$	78,438			$	322,804	$	68,617

The table above excludes

$16.9

million and

$20.8

million of in-process technology, at

March 28, 2020

and

December 28, 2019,

respectively, which has an indefinite life and is subject to impairment or future amortization as developed technology when the projects are completed. During the

first

quarter of

2020

in-process technology was completed and transferred to developed technology. Changes in the carrying values of purchased intangible assets presented above are a result of the impact of fluctuation in currency exchange rates.

We evaluate goodwill and other indefinite-lived intangible assets for impairment annually and when an event occurs or circumstances change that indicate that the carrying value

may

not

be recoverable. We previously completed our required annual goodwill and indefinite-lived intangible impairment testing as of

October 1, 2019,

the

first

day of our

fourth

quarter and concluded there were

impairments of goodwill within our reporting units or our indefinite-lived intangible assets.

Other events and changes in circumstances

may

also require goodwill to be tested for impairment between annual measurement dates. During the

first

quarter of

2020,

the volatility in Cohu’s stock price, the global economic downturn and business interruptions associated with the COVID-

pandemic led us to determine that there was a triggering event related to goodwill within all of our identified reporting units and our indefinite-lived intangible assets. We performed an interim assessment as of

March 28, 2020

and determined that the fair values of our identified reporting units all exceeded their carrying values and we have concluded there were

impairment of goodwill within our reporting units. Anticipated delays in customer adoption of certain new products under development as a result of the COVID-

pandemic, changes to future project roadmap and an increase in the discount rate used in the developing our interim fair value estimate resulted in a

$3.9

million impairment to IPR&D as the carrying value exceeded fair value.

The forecasts utilized in the interim impairment test were based on known facts and circumstances. We evaluate and consider recent events and uncertain items, as well as related potential implications, as part of our annual and interim assessments and incorporate them into the analyses as appropriate. These facts and circumstances are subject to change and

may

not

be the same as future analyses. In a future period, should we again determine that an interim goodwill and indefinite-lived intangible asset impairment review is required, we

may

be required to book additional impairment charges which could have a significant negative impact on our results of operations.

Amortization expense related to intangible assets in the

first

quarter of fiscal

2020

and

2019

was

$9.5

million and

$10.0

million, respectively.