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GOODWILL AND PURCHASED INTANGIBLE ASSETS
 6 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND PURCHASED INTANGIBLE ASSETS GOODWILL AND PURCHASED INTANGIBLE ASSETS
Goodwill
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in the prior business combinations. We have four reportable segments and six reporting units. For additional details, refer to Note 18 “Segment Reporting and Geographic Information” of the Notes to the Condensed Consolidated Financial Statements. The following table presents changes in goodwill carrying value during the six months ended December 31, 2020(1):
(In thousands)Wafer Inspection and Patterning
Global Service and Support (“GSS”)
Specialty Semiconductor ProcessPCB and DisplayComponent InspectionTotal
Balance as of June 30, 2020$416,840 $25,908 $681,858 $907,221 $13,575 $2,045,402 
Foreign currency adjustments43 — — — — 43 
Balance as of December 31, 2020$416,883 $25,908 $681,858 $907,221 $13,575 $2,045,445 
_________________
(1)No goodwill was assigned to the Other reporting unit, and accordingly it was excluded from the table above.
    
Goodwill is not subject to amortization but is tested for impairment annually during the third fiscal quarter as well as whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In testing goodwill for impairment, we utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. When performing the qualitative assessment, we consider the following factors: declines in our stock price or market capitalization, declines in our market share, and declines in revenues or profitability at our reporting units. Any impairment charges could have a material adverse effect on our operating results and net asset value in the quarter in which we recognize the impairment charge.
If our qualitative assessment indicates that goodwill impairment is more likely than not, we perform a quantitative assessment by comparing the carrying value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the carrying value, the amount of impairment is computed as the excess of the carrying value over the estimated fair value, not to exceed the carrying value of goodwill.
As of December 31, 2020, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to the assessment performed in the third quarter of the fiscal year ended June 30, 2020. As a result of that assessment, we recorded $144.2 million and $112.5 million in impairment charges in the Specialty Semiconductor Process and PCB and Display reporting units, respectively, in the three months ended March 31, 2020. For additional details, refer to Note 7 “Goodwill and Purchased Intangible Assets” of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020.
Purchased Intangible Assets
The components of purchased intangible assets as of the dates indicated below were as follows:
As ofAs of
(In thousands) December 31, 2020June 30, 2020
Category
Range of
Useful 
Lives
(in years)
Gross
Carrying
Amount		Accumulated
Amortization
and
Impairment		Net
Amount		Gross
Carrying
Amount		Accumulated
Amortization
and
Impairment		Net
Amount
Existing technology
4-8
$1,373,458 $418,402 $955,056 $1,269,883 $342,623 $927,260 
Customer relationships
4-9
305,817 115,070 190,747 305,817 98,754 207,063 
Trade name / Trademark
4-7
117,383 46,355 71,028 117,383 39,216 78,167 
Backlog and other
<1-9
50,404 49,551 853 50,404 47,215 3,189 
Intangible assets subject to amortization1,847,062 629,378 1,217,684 1,743,487 527,808 1,215,679 
In-process research and development72,259 100 72,159 175,834 100 175,734 
Total$1,919,321 $629,478 $1,289,843 $1,919,321 $527,908 $1,391,413 

Purchased intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be fully recoverable. The impairment indicator primarily includes the declines in our operating cash flows from the use of these assets. If the impairment indicators are present, we are required to perform a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to these long-lived assets to their carrying value.
We performed the required recoverability test for intangible assets in the third quarter of the fiscal year ended June 30, 2020 and concluded that there was no impairment based on the assessment. As of December 31, 2020, there were no impairment indicators for purchased intangible assets.
Amortization expense for purchased intangible assets for the periods indicated below was as follows:
Three Months EndedSix Months Ended
December 31,December 31,
(In thousands)2020201920202019
Amortization expense - Cost of revenues$38,738 $36,364 $75,778 $71,985 
Amortization expense - Selling, general and administrative12,301 20,257 25,730 42,513 
Amortization expense - Research and development31 131 62 162 
Total $51,070 $56,752 $101,570 $114,660 
Based on the purchased intangible assets gross carrying amount recorded as of December 31, 2020, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30:Amortization (In thousands)
2021 (remaining six months)$104,418 
2022208,186 
2023207,094 
2024204,577 
2025192,368 
2026 and thereafter301,041 
Total$1,217,684