Goodwill and Acquired Intangible Assets

3 Months Ended

Apr. 02, 2023

. 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 April 2, 2023, 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 April 2, 2023, were as follows:


	Robotics		Wireless Test			Semiconductor Test			System Test			Total

	(in thousands)
Balance at December 31, 2022
Goodwill	$	383,166	$	361,819		$	262,077		$	158,699		$	1,165,761
Accumulated impairment losses		—		(353,843	)		(260,540	)		(148,183	)		(762,566	)

		383,166		7,976			1,537			10,516			403,195
Foreign currency translation adjustment		6,609		—			24			—			6,633

Balance at April 2, 2023
Goodwill		389,775		361,819			262,101			158,699			1,172,394
Accumulated impairment losses		—		(353,843	)		(260,540	)		(148,183	)		(762,566	)

	$	389,775	$	7,976		$	1,561		$	10,516		$	409,828

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 April 2, 2023
Developed technology	$	270,967	$	(237,269	)	$	(5,560	)	$	28,138
Customer relationships		57,739		(51,756	)		184			6,167
Tradenames and trademarks		59,387		(43,101	)		(1,345	)		14,941

Total intangible assets	$	388,093	$	(332,126	)	$	(6,721	)	$	49,246

Balance, December 31, 2022
Developed technology	$	270,967	$	(234,208	)	$	(5,935	)	$	30,824
Customer relationships		57,739		(51,186	)		172			6,725
Tradenames and trademarks		59,387		(41,930	)		(1,528	)		15,929

Total intangible assets	$	388,093	$	(327,324	)	$	(7,291	)	$	53,478

Aggregate intangible asset amortization expense for the three months ended April 2, 2023 and April 3, 2022 was $4.8 million and $5.1 million, respectively.

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


Year	Amortization Expense
	(in thousands)
2023	$	14,219
2024		18,749
2025		11,320
2026		2,371
2027		1,155
Thereafter		1,432