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Note 2 - Goodwill and Purchased Intangible Assets

12 Months Ended

Dec. 30, 2023

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 30, 2023, and December 31, 2022, were as follows (in thousands):

	Total Goodwill
Balance December 25, 2021	$	219,791
Impact of currency exchange		(6,252	)
Balance December 31, 2022		213,539
Additions		24,132
Impact of currency exchange		3,987
Balance December 30, 2023	$	241,658

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

	December 30, 2023						December 31, 2022
					Remaining
	Gross Carrying		Accumulated		Useful Life		Gross Carrying		Accumulated
	Amount		Amortization		(years)		Amount		Amortization
Developed technology	$	233,623	$	137,168		4.2	$	224,253	$	128,938
Customer relationships		73,759		28,932		7.1		64,632		31,015
Trade names		21,569		11,231		5.4		20,461		9,397
Backlog		100		25		0.8		-		-
Covenant not-to-compete		250		175		3.0		269		161
	$	329,301	$	177,531			$	309,615	$	169,511

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

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, 2023, 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 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 $36.4 million in 2023, $33.2 million in 2022 and $35.4 million in 2021. As of December 30, 2023, we expect amortization expense in future periods to be as follows: 2024 - $39.3 million; 2025 - $30.6 million; 2026 - $24.4 million; 2027 - $20.8 million 2028 - $18.2 million; and thereafter $18.5 million.