XML 15 R11.htm IDEA: XBRL DOCUMENT

Goodwill and Intangible Assets

3 Months Ended

Sep. 30, 2019

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the three month period ended September 30, 2019 were as follows (in thousands):


					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Consolidated
Balance as of June 30, 2019	$	200,079	$	40,064	$	66,965	$	307,108
Goodwill adjusted during the period		483		—		—		483
Foreign currency translation adjustment		(254)		(78)		(546)		(878)
Balance as of September 30, 2019	$	200,308	$	39,986	$	66,419	$	306,713

Intangible assets consisted of the following (in thousands):


		June 30, 2019						September 30, 2019
	Weighted	Gross						Gross
	Average	Carrying		Accumulated		Intangibles		Carrying		Accumulated		Intangibles
	Lives	Value		Amortization		Net		Value		Amortization		Net
Amortizable assets:
Software development costs	8 years	$	29,393	$	(12,747)	$	16,646	$	30,740	$	(13,992)	$	16,748
Patents	19 years		8,688		(1,927)		6,761		9,104		(2,033)		7,071
Developed technology	10 years		53,460		(14,050)		39,410		53,443		(15,412)		38,031
Customer relationships/backlog	7 years		63,101		(22,132)		40,969		62,484		(23,862)		38,622
Total amortizable assets			154,642		(50,856)		103,786		155,771		(55,299)		100,472
Non-amortizable assets:
IPR&D			2,290		—		2,290		2,290		—		2,290
Trademarks			26,878		—		26,878		26,871		—		26,871
Total intangible assets		$	183,810	$	(50,856)	$	132,954	$	184,932	$	(55,299)	$	129,633

Amortization expense related to intangible assets was $5.3 million and $4.9 million for the three months ended September 30, 2018 and 2019, respectively.

At September 30, 2019, the estimated future amortization expense for intangible assets was as follows (in thousands):


2020 (remaining 9 months)	$	15,523
2021		19,009
2022		15,142
2023		14,001
2024		12,947
Thereafter, including assets that have not yet begun to be amortized		23,850
Total	$	100,472

Software development costs for software products incurred before establishing technological feasibility are charged to operations. Software development costs incurred after establishing technological feasibility are capitalized on a product by product basis until the product is available for general release to customers at which time amortization begins. Annual amortization, charged to cost of goods sold, is the amount computed using the ratio that current revenues for a product bear to the total current and anticipated future revenues for that product. In the event that future revenues are not estimable, such costs are amortized on a straight-line basis over the remaining estimated economic life of the product. Amortizable assets that have not yet begun to be amortized are included in Thereafter in the table above. For the three months ended September 30, 2018 and 2019, we capitalized software development costs in the amount of $0.4 million and $1.3 million, respectively.