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Goodwill and Intangible Assets

3 Months Ended

Sep. 30, 2021

3. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the three-month period ended September 30, 2021 were as follows (in thousands)


					Optoelectronics
					And
	Security		Healthcare		Manufacturing
	Division		Division		Division		Consolidated
Balance as of June 30, 2021	$	206,426	$	43,584	$	70,294	$	320,304
Goodwill acquired or adjusted during the period		212		—		—		212
Foreign currency translation adjustment		(150)		(94)		(927)		(1,171)
Balance as of September 30, 2021	$	206,488	$	43,490	$	69,367	$	319,345

Intangible assets consisted of the following (in thousands):


		June 30, 2021						September 30, 2021
	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	$	49,183	$	(15,679)	$	33,504	$	53,326	$	(16,436)	$	36,890
Patents	19 years		8,753		(2,597)		6,156		8,501		(2,697)		5,804
Developed technology	10 years		60,665		(25,923)		34,742		60,612		(27,505)		33,107
Customer relationships	7 years		50,676		(26,588)		24,088		50,099		(27,750)		22,349
Total amortizable assets			169,277		(70,787)		98,490		172,538		(74,388)		98,150
Non-amortizable assets:
In-process R&D			533		—		533		533		—		533
Trademarks			28,585		—		28,585		28,579		—		28,579
Total intangible assets		$	198,395	$	(70,787)	$	127,608	$	201,650	$	(74,388)	$	127,262

Amortization expense related to intangible assets was $4.8 million and $4.4 million for the three months ended September 30, 2020 and 2021, respectively.

At September 30, 2021, the estimated future amortization expense for intangible assets was as follows (in thousands):

Fiscal Year


2022 (remaining 9 months)	$	12,764
2023		19,482
2024		18,962
2025		15,668
2026		11,736
Thereafter		19,538
Total	$	98,150

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 each of the three months ended September 30, 2020 and 2021, we capitalized software development costs in the amount of $4.1 million.