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Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2020

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the nine-month period ended March 31, 2020 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 acquired or adjusted during the period		2,213		—		1,033		3,246
Foreign currency translation adjustment		(517)		(55)		(1,143)		(1,715)
Balance as of March 31, 2020	$	201,775	$	40,009	$	66,855	$	308,639

Intangible assets consisted of the following (in thousands):


		June 30, 2019						March 31, 2020
	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	$	37,129	$	(15,553)	$	21,576
Patents	19 years		8,688		(1,927)		6,761		9,681		(2,481)		7,200
Developed technology	10 years		53,460		(14,050)		39,410		54,804		(18,135)		36,669
Customer relationships/backlog	7 years		63,101		(22,132)		40,969		63,244		(28,144)		35,100
Total amortizable assets			154,642		(50,856)		103,786		164,858		(64,313)		100,545
Non-amortizable assets:
IPR&D			2,290		—		2,290		2,200		—		2,200
Trademarks			26,878		—		26,878		26,726		—		26,726
Total intangible assets		$	183,810	$	(50,856)	$	132,954	$	193,784	$	(64,313)	$	129,471

Amortization expense related to intangible assets was $5.4 million and $4.9 million for the three-month periods ended March 31, 2019 and 2020, respectively. For the nine months ended March 31, 2019 and 2020, amortization expense related to intangible assets was $16.3 million and $14.3 million, respectively.

At March 31, 2020, the estimated future amortization expense for intangible assets was as follows (in thousands):


2020 (remaining 3 months)	$	4,639
2021		18,294
2022		15,581
2023		14,286
2024		13,543
Thereafter, including assets that have not yet begun to be amortized		34,202
Total	$	100,545

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 March 31, 2019 and 2020, we capitalized software development costs in the amounts of $0.8 million and $4.5 million, respectively. For the nine months ended March 31, 2019 and 2020, we capitalized software development costs in the amounts of $1.8 million and $7.7 million, respectively.