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Goodwill and Intangible Assets

3 Months Ended

Sep. 30, 2020

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the three-month period ended September 30, 2020 were as follows (in thousands):


					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Consolidated
Balance as of June 30, 2020	$	203,627	$	39,983	$	67,017	$	310,627
Goodwill acquired or adjusted during the period		498		3,244		—		3,742
Foreign currency translation adjustment		149		113		880		1,142
Balance as of September 30, 2020	$	204,274	$	43,340	$	67,897	$	315,511

Intangible assets consisted of the following (in thousands):


		June 30, 2020						September 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 years	$	41,332	$	(16,295)	$	25,037	$	44,436	$	(16,344)	$	28,092
Patents	19 years		9,962		(2,584)		7,378		10,214		(2,845)		7,369
Developed technology	10 years		55,719		(19,556)		36,163		60,945		(21,167)		39,778
Customer relationships/backlog	7 years		64,128		(32,110)		32,018		63,550		(33,172)		30,378
Total amortizable assets			171,141		(70,545)		100,596		179,145		(73,528)		105,617
Non-amortizable assets:
IPR&D			533		—		533		533		—		533
Trademarks			27,150		—		27,150		28,631		—		28,631
Total intangible assets		$	198,824	$	(70,545)	$	128,279	$	208,309	$	(73,528)	$	134,781

Amortization expense related to intangible assets was $4.9 million and $4.8 million for the three-month periods ended September 30, 2019 and 2020, respectively.

At September 30, 2020, the estimated future amortization expense for intangible assets was as follows (in thousands):


2021 (remaining 9 months)	$	13,977
2022		17,804
2023		17,457
2024		16,774
2025		12,691
Thereafter		26,914
Total	$	105,617

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, 2019 and 2020, we capitalized software development costs in the amounts of $1.3 million and $4.1 million, respectively.