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Goodwill and Acquired Intangible Assets
 3 Months Ended
Mar. 29, 2020
Goodwill and 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. 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 29, 2020, were as follows:
                                         
 
Industrial
Automation
 
  
System
Test
 
  
Wireless
Test
 
  
Semiconductor
Test
 
  
Total
 
 
(in thousands)
 
Balance at December 31, 2019
   
     
     
     
     
 
Goodwill
  $
396,483
    $
158,699
    $
361,819
    $
261,996
    $
1,178,997
 
Accumulated impairment losses
   
—  
      
(148,183
 )    
(353,843
 )    
(260,540
 )    
(762,566
 )
                                         
   
396,483
     
10,516
     
7,976
     
1,456
      
416,431
 
AutoGuide acquisition
   
(149
 )    
—  
      
—  
      
—  
      
(149
 )
Foreign currency translation adjustment
   
(6,354
 )    
—  
      
—  
      
5
     
(6,349
 )
                                         
Balance at March 29, 2020
   
     
     
     
     
 
Goodwill
   
389,980
     
158,699
     
361,819
     
262,001
     
1,172,499
 
Accumulated impairment losses
   
—  
      
(148,183
 )    
(353,843
 )    
(260,540
 )    
(762,566
 )
                                         
  $
389,980
    $
10,516
    $
7,976
    $
1,461
    $
409,933
 
                                         
 
 
 
 
 
 
 
 
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, March 29, 2020
  
 
Developed technology
  $
361,787
    $
(286,166
 )   $
(6,663
 )   $
68,958
 
Customer relationships
   
75,669
     
(60,406
 )    
(547
 )    
14,716
 
Tradenames and trademarks
   
70,120
     
(38,067
 )    
(1,406
 )    
30,647
 
Backlog
   
260
      
(260
 )    
—  
      
—  
  
                                 
Total intangible assets
  $
507,836
    $
(384,899
 )   $
(8,616
 )   $
114,321
 
                                 
Balance, December 31, 2019
   
     
     
     
 
Developed technology
  $
361,787
    $
(279,000
 )   $
(5,709
 )   $
77,078
 
Customer relationships
   
75,669
     
(59,077
 )    
(455
 )    
16,137
 
Tradenames and trademarks
   
70,120
     
(36,671
 )    
(1,184
 )    
32,265
 
Backlog
   
260
     
(260
 )    
—  
      
—  
  
                                 
Total intangible assets
  $
507,836
    $
(375,008
 )   $
(7,348
 )   $
125,480
 
                                 
 
 
 
 
 
 
Aggregate intangible asset amortization expense for the three months ended March 29, 2020 and March 31, 2019
was $9.9 million and $10.6 million, respectively.
Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows:
         
   
Amortization Expense
 
Year
  
(in thousands)
 
2020 (remainder)
   
20,411
 
2021
   
20,391
 
2022
   
19,498
 
2023
   
19,023
 
2024
   
18,718
 
Thereafter
   
16,280