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GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2020

6. GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill by segment for fiscal 2019 and 2020 are as follows (in thousands):


					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Consolidated
Balance as of June 30, 2018	$	191,810	$	40,157	$	60,246	$	292,213
Goodwill acquired or adjusted during the period		8,340		—		7,019		15,359
Foreign currency translation adjustment		(71)		(93)		(300)		(464)
Balance as of June 30, 2019	$	200,079	$	40,064	$	66,965	$	307,108
Goodwill acquired or adjusted during the period		3,973		—		1,033		5,006
Foreign currency translation adjustment		(425)		(81)		(981)		(1,487)
Balance as of June 30, 2020	$	203,627	$	39,983	$	67,017	$	310,627

The measurement periods for the valuation of assets and liabilities acquired may extend up to one year. Adjustments in acquisitions accounting may require a change in the amounts allocated to goodwill during the periods in which the adjustments are determined.

Intangible assets subject to amortization consisted of the following (amounts in thousands):


		June 30, 2019						June 30, 2020
	Weighted	Gross						Gross
	Average	Carrying		Accumulated		Intangibles		Carrying		Accumulated		Intangibles
	Lives	Value		Amortization		Net		Value		Amortization		Net
Amortizable assets:
Software development costs	8-9 years	$	29,393	$	(12,747)	$	16,646	$	41,332	$	(16,295)	$	25,037
Patents	19 years		8,688		(1,927)		6,761		9,962		(2,584)		7,378
Developed technology	10 years		53,460		(14,050)		39,410		55,719		(19,556)		36,163
Customer relationships/backlog	7 years		63,101		(22,132)		40,969		64,128		(32,110)		32,018
Total amortizable assets			154,642		(50,856)		103,786		171,141		(70,545)		100,596
Non-amortizable assets:
IPR&D			2,290		—		2,290		533		—		533
Trademarks			26,878		—		26,878		27,150		—		27,150
Total intangible assets		$	183,810	$	(50,856)	$	132,954	$	198,824	$	(70,545)	$	128,279

During fiscal 2018 and 2020, we recorded impairment charges related to intangible assets for IPR&D of $2.5 million and $3.3 million, respectively, due to changes in facts and circumstances associated with shifts in strategic directions of the intended use of the assets which led us to conclude that the carrying values of the intangible assets were not recoverable. These intangible assets impairment charges were included in impairment, restructuring and other charges in our consolidated statements of operations. During fiscal 2019 there were no impairment charges related to intangible assets.

Amortization expense for fiscal 2018, 2019 and 2020 was $19.5 million, $21.4 million and $20.7 million, respectively. Future acquisitions could cause these amounts to increase. At June 30, 2020, the estimated future amortization expense was as follows (in thousands):


2021	$	18,038
2022		17,376
2023		16,269
2024		15,497
2025		11,720
Thereafter, including assets that have not yet begun to be amortized		21,696
Total	$	100,596

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. During fiscal 2018, 2019 and 2020, we capitalized software development costs in the amounts of $1.8 million, $2.7 million and $11.9 million, respectively.