INTANGIBLE ASSETS AND GOODWILL

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of September 30, 2021:


(In thousands)	Weighted Average Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Balance at September 30, 2021
Finite-lived intangible assets
Trade name	14.1	$	100,700	$	(11,980)	$	88,720
Customer relationships	12.0	2,700		(539)		2,161
Patents	3.0	10,442		(6,427)		4,015
Acquired developed technology	8.4	853,171		(155,404)		697,767
Supply agreements	5.7	2,295		—		2,295
Total finite-lived intangible assets		969,308		(174,350)		794,958
In-process research and development	n/a	1,250,000		—		1,250,000
Total intangible assets		$	2,219,308	$	(174,350)	$	2,044,958

The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of December 31, 2020:


(In thousands)	Weighted Average Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net balance at December 31, 2020
Finite-lived intangible assets
Trade name	14.9	$	100,700	$	(7,258)	$	93,442
Customer relationships	12.8	2,700		(404)		2,296
Patents	3.7	10,441		(5,422)		5,019
Acquired developed technology	9.0	814,171		(93,278)		720,893
Supply agreements	6.5	30,000		(4,527)		25,473
Total intangible assets		$	958,012	$	(110,889)	$	847,123

As of September 30, 2021, the estimated future amortization expense associated with the Company’s finite-lived intangible assets for each of the five succeeding fiscal years is as follows:


(In thousands)
2021 (remaining three months)	$	23,053
2022	92,205
2023	92,202
2024	91,868
2025	90,820
Thereafter	404,810
	$	794,958

The Company’s acquired intangible assets are being amortized on a straight-line basis over the estimated useful life.

During the third quarter of 2021 and in connection with the preparation of the financial statements, the Company recorded a non-cash, pre-tax impairment loss of $20.2 million related to the supply agreement intangible asset that was initially recorded as part of the combination with Genomic Health due to lower than anticipated performance of the underlying product. The Company utilized the income approach to measure the fair value of the supply agreement, which involves significant unobservable inputs (Level 3 inputs). The impairment is recorded in intangible asset impairment charge in the condensed consolidated statement of operations for the three and nine months ended September 30, 2021.

During the third quarter of 2020, the Company began discussions with Biocartis regarding the termination of its agreements with Biocartis related to the development of an in vitro diagnostic (“IVD”) version of the Oncotype DX Breast Recurrence Score® test. As a result, and in connection with the preparation of the financial statements included in the Company’s Form 10-Q for the period ended September 30, 2020, the Company recorded a non-cash, pre-tax impairment loss of $200.0 million related to the in-process research and development intangible asset that was initially recorded as part of the combination with Genomic Health. The impairment is recorded in intangible asset impairment charge in the condensed consolidated statement of operations for the three and nine months ended September 30, 2020.

During the third quarter of 2020, the Company abandoned certain research and development assets acquired through an asset purchase agreement with Armune Biosciences, Inc. in 2017. These assets were expected to complement the Company’s product pipeline and were expected to have alternative future uses at the time of acquisition; however, due to changes in strategic priorities and efforts during the third quarter of 2020, these assets are no longer expected to be utilized to advance the Company’s product pipeline. As a result, and in connection with the preparation of the financial statements included in the Company’s Form 10-Q for the period ended September 30, 2020, the Company wrote-off the gross cost basis of the intangible asset of $12.2 million and accumulated amortization of $2.5 million as of September 30, 2020. This write-off resulted in a non-cash, pre-tax impairment loss of $9.7 million, which is recorded in intangible asset impairment charge in the condensed consolidated statement of operations for the three and nine months ended September 30, 2020.

Goodwill

The change in the carrying amount of goodwill for the periods ended September 30, 2021 and December 31, 2020 is as follows:


(In thousands)
Balance, January 1, 2020	$	1,203,197
Paradigm & Viomics acquisition	30,431
Genomic Health acquisition adjustment (1)	4,044
Balance, December 31, 2020	$	1,237,672
Thrive acquisition	948,105
Ashion Acquisition	56,758
Balance September 30, 2021	$	2,242,535

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(1)The Company recognized a measurement period adjustment to goodwill related to an increase in Genomic Health’s pre-acquisition deferred tax liability due to finalization of certain income-tax related items.

There were no impairment losses for the three and nine months ended September 30, 2021 and 2020.