KLA Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

善意和购买Intangible Assets

善意和购买Intangible Assets

3 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND PURCHASED INTANGIBLE ASSETS

NOTE 7 – GOODWILL AND PURCHASED INTANGIBLE ASSETS

Goodwill

The Company has four reporting units: Wafer Inspection, Patterning, Global Service and Support (“GSS”), and Others. The following table presents goodwill balances and the movements by reporting unit during the three months ended September 30, 2018 :



(In thousands)	Wafer Inspection			Patterning		GSS		Others		Total
Balance as of June 30, 2018	$	281,005		$	53,255	$	8,039	$	12,399	$	354,698
Acquired goodwill	—			—		4,631		1,176		5,807
Foreign currency and other adjustments	(77		)	—		—		—		(77		)
Balance as of September 30, 2018	$	280,928		$	53,255	$	12,670	$	13,575	$	360,428

The acquired goodwill during the three months ended September 30, 2018 resulted primarily from the acquisition of certain assets and liabilities of privately-held companies. See Note 6 “Business Combinations” for additional details.

As of September 30, 2018, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to the qualitative assessment performed in the third quarter of the fiscal year ended June 30, 2018 . For additional details, refer to Note 6 “Goodwill and Purchased Intangible Assets,” of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018 . The next annual assessment of goodwill by reporting unit is scheduled to be performed in the third quarter of the fiscal year ending June 30, 2019 .

Purchased Intangible Assets

The components of purchased intangible assets as of the dates indicated below were as follows:



(In thousands)		As of September 30, 2018						As of June 30, 2018
Category	Range of 有用的生活	Gross Carrying Amount		Accumulated Amortization and Impairment		Net Amount		Gross Carrying Amount		Accumulated Amortization and Impairment		Net Amount
Existing technology	4-7 years	$	166,029	$	145,093	$	20,936	$	160,859	$	144,202	$	16,657
Trade name/Trademark	5-7 years	21073年		20,100		973		20,993		20,060		933
Customer relationships	7 years	58,050		55,234		2,816		56,680		55,136		1,544
Other	<1-5 years	1,270		866		404		660		461		199
Total		$	246,422	$	221,293	$	25,129	$	239,192	$	219,859	$	19,333

Purchased intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.

For the three months ended September 30, 2018 and 2017 , amortization expense for purchased intangible assets was $1.4 million and $1.2 million , respectively. The increase in the gross carrying value resulted primarily from the acquisition of certain assets and liabilities of privately-held companies. See Note 6 “Business Combinations” for additional details. Based on the purchased intangible assets recorded as of September 30, 2018 , and assuming no subsequent additions to, or impairment of, the underlying assets, the remaining estimated annual amortization expense is expected to be as follows:



Fiscal year ending June 30:	Amortization (In thousands)
2019 (remaining 9 months)	$	3,523
2020	4,438
2021	4,438
2022	4,438
2023	4,244
Thereafter	4,048
Total	$	25,129