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Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2021

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the nine-month period ended March 31, 2021 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		1,905		3,244		—		5,149
Foreign currency translation adjustment		264		333		2,838		3,435
Balance as of March 31, 2021	$	205,796	$	43,560	$	69,855	$	319,211

Intangible assets consisted of the following (in thousands):


		June 30, 2020						March 31, 2021
	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	$	45,421	$	(14,817)	$	30,604
Patents	19 years		9,962		(2,584)		7,378		9,890		(2,790)		7,100
Developed technology	10 years		55,719		(19,556)		36,163		60,923		(24,352)		36,571
Customer relationships/backlog	7 years		64,128		(32,110)		32,018		62,577		(35,929)		26,648
Total amortizable assets			171,141		(70,545)		100,596		178,811		(77,888)		100,923
Non-amortizable assets:
In-process research and development			533		—		533		533		—		533
Trademarks			27,150		—		27,150		28,602		—		28,602
Total intangible assets		$	198,824	$	(70,545)	$	128,279	$	207,946	$	(77,888)	$	130,058

Amortization expense related to intangible assets was $4.9 million and $4.8 million for the three months ended March 31, 2020 and 2021, respectively. For the nine months ended March 31, 2020 and 2021, amortization expense related to intangible assets was $14.3 million and $15.1 million, respectively.

At March 31, 2021, the estimated future amortization expense for intangible assets was as follows (in thousands):


2021 (remaining 3 months)	$	4,660
2022		17,152
2023		17,377
2024		16,705
2025		13,986
Thereafter		31,043
Total	$	100,923

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, 2020 and 2021, we capitalized software development costs in the amounts of $4.5 million and $2.6 million, respectively. For the nine months ended March 31, 2020 and 2021, we capitalized software development costs in the amounts of $7.7 million and $9.1 million, respectively.