Goodwill and Acquired Intangible Assets

3 Months Ended

Mar. 31, 2024

Goodwill and Acquired Intangible Assets

M. GOODWILL AND ACQUIRED INTANGIBLE ASSETS

Goodwill

Teradyne performs its annual goodwill impairment test as required under the provisions of ASC 350-10, “Intangibles—Goodwill and Other” on December 31 of each fiscal year unless interim indicators of impairment exist. In the three months ended March 31, 2024, there were no interim indicators of impairment. Goodwill is considered impaired when the net book value of a reporting unit exceeds its estimated fair value.

The changes in the carrying amount of goodwill by reportable segments for the three months ended March 31, 2024, were as follows:

	Robotics			Wireless Test			Semiconductor Test			System Test			Total
	(in thousands)
Balance at December 31, 2023
Goodwill	$	395,463		$	361,819		$	262,237		$	158,699		$	1,178,218
Accumulated impairment losses		—			(353,843	)		(260,540	)		(148,183	)		(762,566	)
Total Goodwill		395,463			7,976			1,697			10,516			415,652
Foreign currency translation adjustment		(7,962	)		—			(114	)		—			(8,076	)
Balance at March 31, 2024
Goodwill	$	387,502		$	361,819		$	262,123		$	158,699			1,170,142
Accumulated impairment losses		—			(353,843	)		(260,540	)		(148,183	)		(762,566	)
Total Goodwill	$	387,502		$	7,976		$	1,583		$	10,516		$	407,576

Intangible Assets

Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate.

Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet:

	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Adjustment			Net Carrying Amount
	(in thousands)
Balance at March 31, 2024
Developed technology	$	267,706	$	(246,266	)	$	(5,635	)	$	15,805
Customer relationships		52,109		(48,278	)		203			4,034
Tradenames and trademarks		59,007		(47,231	)		(1,381	)		10,395
Total intangible assets	$	378,822	$	(341,775	)	$	(6,813	)	$	30,234
Balance at December 31, 2023
Developed technology	$	267,706	$	(243,191	)	$	(5,343	)	$	19,172
Customer relationships		52,109		(47,850	)		232			4,491
Tradenames and trademarks		59,007		(46,021	)		(1,245	)		11,741
Total intangible assets	$	378,822	$	(337,062	)	$	(6,356	)	$	35,404

Aggregate intangible asset amortization expense was $4.7 million and $4.8 million, respectively, for the three months ended March 31, 2024 and April 2, 2023.

Estimated intangible asset amortization expense for each of the five succeeding fiscal years and thereafter is as follows:

Year	Amortization Expense
	(in thousands)
2024	$	14,010
2025		11,290
2026		2,364
2027		1,148
2028		1,066
Thereafter		356