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Note 2 - Goodwill and Purchased Intangible Assets

6 Months Ended

Jun. 26, 2021

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 six-month period ended June 26, 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
Sale of PCB Test business⁽¹⁾		-			(21,899	)		(21,899	)
Impact of currency exchange		(4,147	)		319			(3,828	)
Balance, June 26, 2021	$	226,577		$	-		$	226,577

⁽¹⁾

On June 24, 2021, we completed the sale of our PCB Test business. See Note 12, “Discontinued Operations and Divestitures” for additional information.

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

	June 26, 2021					December 26, 2020
					Remaining
					Weighted
	Gross				Average	Gross
	Carrying		Accum.		Amort.	Carrying		Accum.
	Amount		Amort.		Period (in years)	Amount		Amort.
Developed technology	$	239,375	$	95,745	5.1	$	239,250	$	83,246
Customer relationships		67,144		23,837	7.9		74,933		22,751
Trade names		21,251		6,846	7.8		23,756		6,279
Covenant not-to-compete		318		143	5.5		340		136
Total intangible assets	$	328,088	$	126,571		$	338,279	$	112,412

The table above excludes $1.9 million and $7.8 million of IPR&D, at June 26, 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 six months ended June 26, 2021, we completed certain projects previously included in IPR&D and transferred $5.6 million 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 was approximately $9.0 million in the second quarter of fiscal 2021 and $18.3 million in the first six months of fiscal 2021. Amortization expense related to intangible assets was approximately $9.5 million in the second quarter of fiscal 2020 and $19.1 million in the first six months of fiscal 2020.