Intangible Assets, Goodwill and Other

9 Months Ended

Mar. 27, 2021

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.

There were no changes to goodwill during the nine months ended March 27, 2021.

No indicators or instances of impairment were identified in the nine months ended March 27, 2021 and fiscal year ended June 27, 2020.

Intangible Assets

Intangible assets consisted of the following:

	March 27, 2021						June 27, 2020
	Original Cost		Accumulated Amortization		Net		Original Cost		Accumulated Amortization		Net
	(in thousands)
Intellectual property	$	530,166	$	471,559	$	58,607	$	525,196	$	458,418	$	66,778
Customer relationships	118,335		110,756		7,579		118,335		108,603		9,732
Trade name	11,374		9,649		1,725		11,374		9,265		2,109
Backlog	170		170		—		170		25		145
Patents	2,500		2,500		—		2,500		2,500		—
Total amortizable purchased intangible assets	662,545		594,634		67,911		657,575		578,811		78,764
In-process research & development (IPR&D)	2,980		—		2,980		9,195		—		9,195
Total purchased intangible assets	$	665,525	$	594,634	$	70,891	$	666,770	$	578,811	$	87,959

During the nine months ended March 27, 2021, the Company placed in service and reclassified $5.0 million of IPR&D to intellectual property intangible assets and wrote-off $1.2 million of IPR&D due to impairment.

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

	Three Months Ended				Nine Months Ended
	March 27, 2021		March 28, 2020		March 27, 2021		March 28, 2020
	(in thousands)
Cost of goods sold	$	4,430	$	3,111	$	13,140	$	9,332
Intangible asset amortization	846		756		2,708		2,268
Total intangible asset amortization expenses	$	5,276	$	3,867	$	15,848	$	11,600

The following table represents the estimated future amortization expense of intangible assets as of March 27, 2021:

	Amount
Fiscal Year	(in thousands)
Remainder of 2021	$	3,894
2022	14,164
2023	13,680
2024	10,705
2025	10,426
Thereafter	15,042
Total intangible assets	$	67,911