Goodwill and Intangible Assets

12 Months Ended

Jun. 26, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

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.

In fiscal years 2021 and 2020, the Company elected to perform a qualitative analysis to assess impairment of goodwill rather than to perform the quantitative goodwill impairment test. The key qualitative factors considered in the assessment included the change in the industry and competitive environment, market capitalization, and overall financial performance. Based on the results of this qualitative analysis, the Company determined that it was more likely than not that the fair value of each reporting unit exceeded its carrying value. The Company concluded that goodwill was not impaired in fiscal years 2021 and 2020.

Activity and goodwill balances for the fiscal years ended June 26, 2021 and June 27, 2020 were as follows:

	Goodwill
	(in thousands)
Balance, June 29, 2019	$	532,251
Acquisitions	30,289
Balance, June 27, 2020	562,540
Acquisitions	—
Balance, June 26, 2021	$	562,540

Intangible Assets

The useful lives of amortizing intangible assets are as follows:

Asset	Life
Intellectual property	1-10 years
Customer relationships	3-10 years
Trade name	1-4 years
Patents	5 years

Intangible assets consisted of the following:

	June 26, 2021						June 27, 2020
	Original Cost		Accumulated Amortization		Net		Original Cost		Accumulated Amortization		Net
	(in thousands)
Intellectual property	$	530,191	$	474,606	$	55,585	$	525,196	$	458,418	$	66,778
Customer relationships	118,335		111,499		6,836		118,335		108,603		9,732
Trade name	11,374		9,777		1,597		11,374		9,265		2,109
Backlogs	170		170		—		170		25		145
Patent	2,500		2,500		—		2,500		2,500		—
Total amortizable intangible assets	662,570		598,552		64,018		657,575		578,811		78,764
In-process Research and Development	2,980		—		2,980		9,195		—		9,195
Total intangible assets	$	665,550	$	598,552	$	66,998	$	666,770	$	578,811	$	87,959

During the fiscal year ended June 26, 2021, $5.0 million of IPR&D was completed and reclassified to amortizable Intellectual Property 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 Consolidated Statements of Income:

	For the Year Ended
	June 26, 2021		June 27, 2020		June 29, 2019
	(in thousands)
Cost of goods sold	$	16,189	$	12,860	$	21,689
Intangible asset amortization	3,554		3,078		3,041
Total intangible asset amortization expenses	$	19,743	$	15,938	$	24,730

The following table represents the estimated future amortization expense of intangible assets as of June 26, 2021:

	Amount
Fiscal Year	(in thousands)
2022	$	14,165
2023	13,680
2024	10,705
2025	10,426
2026	8,416
Thereafter	6,626
Total amortizable intangible assets	$	64,018