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Note 2 - Goodwill and Purchased Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Text Block]

2.	Goodwill and Purchased Intangible Assets

Changes in the carrying value of our goodwill during the years ended December 31, 2022, and December 25, 2021, were as follows (in thousands):

	Semiconductor Test & Inspection			PCB Test			Total Goodwill
Balance December 26, 2020	$	230,724		$	21,580		$	252,304
Sale of PCB Test Business⁽¹⁾		-			(21,899	)		(21,899	)
Impact of currency exchange		(10,933	)		319			(10,614	)
Balance December 25, 2021		219,791			-			219,791
Impact of currency exchange		(6,252	)		-			(6,252	)
Balance December 31, 2022	$	213,539		$	-		$	213,539

(1)

On June 24, 2021, we completed the sale of our PCB Test business. See Note 14, “Business Divestitures and Discontinued Operations” for additional information.

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

	December 31, 2022						December 25, 2021
					Remaining
	Gross Carrying		Accumulated		Useful Life		Gross Carrying		Accumulated
	Amount		Amortization		(years)		Amount		Amortization
Developed technology	$	224,253	$	128,938		3.6	$	229,131	$	104,855
Customer relationships		64,632		31,015		6.5		65,916		26,189
Trade names		20,461		9,397		6.4		20,877		7,714
Covenant not-to-compete		269		161		4.0		308		154
	$	309,615	$	169,511			$	316,232	$	138,912

Changes in the carrying values of purchased intangible assets presented above are a result of the impact of fluctuation in currency exchange rates and the sale of our PCB Test business.

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 completed our required annual goodwill impairment testing as of October 1, 2022, the first day of our fourth quarter and concluded there were no impairments of goodwill within our reporting units or our indefinite-lived intangible assets at that time. Other events and changes in circumstances may also require goodwill and our indefinite-lived intangible assets to be tested for impairment between annual measurement dates.

During the fourth quarter of 2021 we completed and transferred to developed technology an in-process technology project which was reviewed for impairment as part of this process. Due to a change in forecasted results an impairment charge of $0.1 million was recorded.

Amortization expense related to purchased intangible assets was approximately $33.2 million in 2022, $35.4 million in 2021 and $38.7 million in 2020. As of December 31, 2022, we expect amortization expense in future periods to be as follows: 2023 - $33.4 million; 2024 - $33.4 million; 2025 - $24.8 million; 2026 - $18.6 million 2027 - $15.1 million; and thereafter $14.8 million.