Goodwill and Intangible Assets

12 Months Ended

Jun. 27, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets [Text Block]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or more often if events or changes in circumstances indicate that the carrying amount may not be recoverable.

In fiscal years 2020 and 2019, the Company elected to perform a qualitative analysis to assess impairment of goodwill rather than to perform the quantitative goodwill impairment test. The key qualitative factors considered in the assessment included the change in the industry and competitive environment, market capitalization, and overall financial performance. Based on the results of this qualitative analysis, the Company determined that it was more likely than not that the fair value of each reporting unit exceeded its carrying value. The Company concluded that goodwill was not impaired in fiscal years 2020 and 2019.

Activity and goodwill balances for the fiscal years ended June 27, 2020 and June 29, 2019 were as follows:

	Goodwill
	(in thousands)
Balance, June 30, 2018	$	532,251
Balance, June 29, 2019	532,251
Acquisitions	30,289
Balance, June 27, 2020	$	562,540

Intangible Assets

The useful lives of amortizing intangible assets are as follows:

Asset	Life
Intellectual property	1-10 years
Customer relationships	3-10 years
Trade name	1-4 years
Patents	5 years

Intangible assets consisted of the following:

	June 27, 2020						June 29, 2019
	Original Cost		Accumulated Amortization		Net		Original Cost		Accumulated Amortization		Net
	(in thousands)
Intellectual property	$	525,196	$	458,418	$	66,778	$	487,346	$	445,558	$	41,788
Customer relationships	118,335		108,603		9,732		116,505		105,901		10,604
Trade name	11,374		9,265		2,109		9,974		8,914		1,060
Backlogs	170		25		145		—		—		—
Patent	2,500		2,500		—		2,500		2,500		—
Total amortizable intangible assets	657,575		578,811		78,764		616,325		562,873		53,452
In-process Research and Development	9,195		—		9,195		2,790		—		2,790
Total intangible assets	$	666,770	$	578,811	$	87,959	$	619,115	$	562,873	$	56,242

During the fiscal year ended June 27, 2020, $2.8 million of IPR&D was completed and reclassified to amortizable Intellectual Property.

The following table presents the amortization expense of intangible assets and its presentation in the Consolidated Statements of Income:

	For the Year Ended
	June 27, 2020		June 29, 2019		June 30, 2018
	(in thousands)
Cost of goods sold	$	12,860	$	21,689	$	46,063
Intangible asset amortization	3,078		3,041		4,467
Total intangible asset amortization expenses	$	15,938	$	24,730	$	50,530

The following table represents the estimated future amortization expense of intangible assets as of June 27, 2020:

	Amount
Fiscal Year	(in thousands)
2021	$	19,279
2022	13,454
2023	12,970
2024	9,995
2025	9,716
Thereafter	13,350
Total amortizable intangible assets	$	78,764