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GOODWILL AND PURCHASED INTANGIBLE ASSETS
 3 Months Ended
Sep. 30, 2021
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 current and prior quarters’ business combinations. We have four reportable segments and six operating segments. The operating segments are determined to be the same as reporting units. For additional details, refer to Note 18 “Segment Reporting and Geographic Information” to our Condensed Consolidated Financial Statements. The following table presents changes in goodwill carrying value during the three months ended September 30, 2021(1):
(In thousands)Wafer Inspection and Patterning
Global Service and Support (“GSS”)
Specialty Semiconductor ProcessPCB and DisplayComponent InspectionTotal
Balance as of June 30, 2021$416,860 $25,908 $681,858 $872,971 $13,575 $2,011,172 
Acquired goodwill30,164 — — — — 30,164 
Foreign currency adjustments2 — — — — 2 
Balance as of September 30, 2021$447,026 $25,908 $681,858 $872,971 $13,575 $2,041,338 
_________________
(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.
As of September 30, 2021, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to the annual assessment performed in the third quarter of the fiscal year ended June 30, 2021. There was no goodwill impairment as a result of that assessment. For additional details, refer to Note 7 “Goodwill and Purchased Intangible Assets” to our Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021.
Purchased Intangible Assets
The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands) As of September 30, 2021As of June 30, 2021
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
$1,400,191 $540,125 $860,066 $1,382,612 $499,219 $883,393 
Customer relationships
4-9
313,317 139,919 173,398 305,817 131,386 174,431 
Trade name / Trademark
4-7
117,983 57,100 60,883 117,383 53,493 63,890 
Backlog and other
<1-9
51,836 50,242 1,594 50,403 49,962 441 
Intangible assets subject to amortization1,883,327 787,386 1,095,941 1,856,215 734,060 1,122,155 
In-process research and development67,656 6,062 61,594 63,256 100 63,156 
Total$1,950,983 $793,448 $1,157,535 $1,919,471 $734,160 $1,185,311 

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.
As of September 30, 2021, 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 Ended September 30,
(In thousands)20212020
Amortization expense - Costs of revenues$41,124 $37,040 
Amortization expense - Selling, general and administrative12,389 13,429 
Amortization expense - Research and development31 31 
Total $53,544 $50,500 
Based on the purchased intangible assets gross carrying amount recorded as of September 30, 2021, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30:Amortization (In thousands)
2022 (remaining nine months)$160,633 
2023212,609 
2024209,615 
2025197,396 
2026182,071 
2027 and thereafter133,617 
Total$1,095,941