Note 2 - Goodwill and Purchased Intangible Assets

3 Months Ended

Mar. 27, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

2. Goodwill and Purchased Intangible Assets

Goodwill and Intangible Assets

Changes in the carrying value of goodwill during the year ended December 26, 2020, and the three-month period ended March 27, 2021, by segment, were as follows (in thousands):

	Semiconductor Test
	& Inspection			PCB Test			Total
Balance, December 28, 2019	$	218,775		$	19,894		$	238,669
Impact of currency exchange		11,949			1,686			13,635
Balance, December 26, 2020		230,724			21,580			252,304
Impact of currency exchange		(5,109	)		(460	)		(5,569	)
Balance, March 27, 2021	$	225,615		$	21,120		$	246,735

Purchased intangible assets, subject to amortization are as follows (in thousands):

	March 27, 2021						December 26, 2020
					Remaining
					Weighted
	Gross				Average		Gross
	Carrying		Accum.		Amort.		Carrying		Accum.
	Amount		Amort.		Period (years)		Amount		Amort.
Developed technology	$	238,892	$	88,305		5.3	$	239,250	$	83,246
Customer relationships		73,691		23,803		8.2		74,933		22,751
Trade names		23,245		6,662		8.5		23,756		6,279
Covenant not-to-compete		321		137		5.8		340		136
Total intangible assets	$	336,149	$	118,907			$	338,279	$	112,412

The table above excludes $4.1 million and $7.8 million of in-process technology, at March 27, 2021 and December 26, 2020, 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 2021, $3.7 million of 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.

Amortization expense related to intangible assets in the first quarter of fiscal 2021 and 2020 was $9.2 million and $9.5 million, respectively.