Goodwill and Other Intangible Assets

12 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Effective July 1, 2019, the Company realigned its organizational structure into two reporting segments for the purpose of

making operational decisions and assessing financial performance: (i) Compound Semiconductors and (ii) Photonic Solutions.

All applicable information has been restated to reflect this change. See Note 14 for further information regarding this segment realignment.

Goodwill represents the excess of the cost over the net tangible and identifiable intangible assets of acquired businesses. Identifiable intangible assets acquired in business combinations are recorded based upon fair value at the date of acquisition.

Changes in the carrying amount of goodwill were as follows ($000):


	Year Ended June 30, 2020
	Photonic Solutions		Compound Semiconductors		Total
Balance-beginning of period	$	134,057	$	185,721	$	319,778
Goodwill acquired	919,192		—		919,192
Foreign currency translation	(755)		794		39
Balance-end of period	$	1,052,494	$	186,515	$	1,239,009


	Year Ended June 30, 2019
	Photonic Solutions		Compound Semiconductors		Total
Balance-beginning of period	$	109,670	$	161,008	$	270,678
Goodwill acquired	26,069		25,569		51,638
Foreign currency translation	(1,682)		(856)		(2,538)
Balance-end of period	$	134,057	$	185,721	$	319,778

The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of June 30, 2020 and 2019 were as follows ($000):


	June 30, 2020										June 30, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Technology	$	444,315	$	(68,048)	$	376,267	$	91,637	$	(39,679)	$	51,958
Trade Names	22,369		(3,669)		18,700		15,759		(1,601)		14,158
Customer Lists	456,223		(92,822)		363,401		132,872		(59,664)		73,208
Other	1,570		(1,570)		—		1,572		(1,572)		—
Total	$	924,477	$	(166,109)	$	758,368	$	241,840	$	(102,516)	$	139,324

Amortization expense recorded on the intangible assets for the fiscal years ended June 30, 2020, 2019 and 2018 was $64.2 million, $16.6 million, and $14.6 million, respectively. The technology intangible assets are being amortized over a range of 60 to 240 months with a weighted-average remaining life of approximately 133 months. The customer lists are being amortized over 60 to 240 months with a weighted-average remaining life of approximately 134 months.

In conjunction with the acquisition of Finisar, the Company recorded the following intangible assets ($000):


	Gross Carrying Amount		Weighted Average Assigned Useful Life (Years)
Technology	$	334,700	12.5
Trade Names	6,700		3.0
Customer Lists	323,800		10.2
	$	665,200

In connection with past acquisitions, the Company acquired trade names with indefinite lives. The carrying amount of these trade names of $14.3 million as of June 30, 2020 is not amortized but tested annually for impairment. The Company completed its impairment test of these trade names with indefinite lives in the fourth quarter of fiscal years 2020 and 2019. Based on the results of these tests, the trade names were not impaired.

The estimated amortization expense for existing intangible assets for each of the five succeeding years is as follows ($000):


Year Ending June 30,
2021	$	77,011
2022	74,252
2023	73,380
2024	64,394
2025	62,334