Goodwill and Acquired Intangible Assets

9 Months Ended

Sep. 29, 2024

Goodwill and Acquired Intangible Assets

N. 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 nine months ended September 29, 2024, 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 nine months ended September 29, 2024, were as follows:

	Robotics		Wireless Test			Semiconductor Test			System Test			Total
	(in thousands)
Balance at December 31, 2023
Goodwill	$	395,463	$	361,819		$	262,237		$	158,699		$	1,178,218
Accumulated impairment losses		—		(353,843	)		(260,540	)		(148,183	)		(762,566	)
Total Goodwill		395,463		7,976			1,697			10,516			415,652
Foreign currency translation adjustment		3,765		—			(5	)		—			3,760
Balance at September 29, 2024
Goodwill	$	399,229	$	361,819		$	262,232		$	158,699			1,181,978
Accumulated impairment losses		—		(353,843	)		(260,540	)		(148,183	)		(762,566	)
Total Goodwill	$	399,229	$	7,976		$	1,692		$	10,516		$	419,412

Intangible Assets

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 September 29, 2024
Developed technology	$	267,706	$	(252,406	)	$	(5,337	)	$	9,963
Customer relationships		52,109		(49,134	)		210			3,185
Tradenames and trademarks		59,007		(49,618	)		(1,249	)		8,140
Total intangible assets	$	378,822	$	(351,158	)	$	(6,376	)	$	21,288
Balance at December 31, 2023
Developed technology	$	267,706	$	(243,191	)	$	(5,343	)	$	19,172
Customer relationships		52,109		(47,850	)		232			4,491
Tradenames and trademarks		59,007		(46,021	)		(1,245	)		11,741
Total intangible assets	$	378,822	$	(337,062	)	$	(6,356	)	$	35,404

Aggregate intangible asset amortization expense was $4.7 million and $14.1 million, respectively, for the three and nine months ended September 29, 2024, and $4.7 million and $14.3 million, respectively, for the three and nine months ended October 1, 2023.

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

Year	Amortization Expense
	(in thousands)
2024	$	4,775
2025		11,454
2026		2,402
2027		1,185
2028		1,104
Thereafter		368