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Goodwill and Intangible Assets

6 Months Ended

Dec. 31, 2019

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the six-month period ended December 31, 2019 are 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		1,843		—		—		1,843
Foreign currency translation adjustment		(116)		90		504		478
Balance as of December 31, 2019	$	201,806	$	40,154	$	67,469	$	309,429

Intangible assets consisted of the following (in thousands):


		June 30, 2019						December 31, 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	$	32,584	$	(14,761)	$	17,823
Patents	19 years		8,688		(1,927)		6,761		9,288		(2,138)		7,150
Developed technology	10 years		53,460		(14,050)		39,410		53,464		(16,780)		36,684
Customer relationships/backlog	7 years		63,101		(22,132)		40,969		62,767		(26,217)		36,550
Total amortizable assets			154,642		(50,856)		103,786		158,103		(59,896)		98,207
Non-amortizable assets:
IPR&D			2,290		—		2,290		2,288		—		2,288
Trademarks			26,878		—		26,878		26,969		—		26,969
Total intangible assets		$	183,810	$	(50,856)	$	132,954	$	187,360	$	(59,896)	$	127,464

Amortization expense related to intangible assets was $5.6 million and $4.5 million for the three-month periods ended December 31, 2018 and 2019, respectively. For the six months ended December 31, 2018 and 2019, amortization expense was $10.9 million and $9.4 million, respectively.

At December 31, 2019, the estimated future amortization expense for intangible assets was as follows (in thousands):


2020 (remaining 6 months)	$	9,308
2021		17,662
2022		15,406
2023		14,104
2024		13,321
Thereafter, including assets that have not yet begun to be amortized		28,406
Total	$	98,207

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 December 31, 2018 and 2019, we capitalized software development costs in the amounts of $0.6 million and $1.9 million, respectively. For the six months ended December 31, 2018 and 2019, we capitalized software development costs in the amount of $1.0 million and $3.2 million, respectively.