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Goodwill and Intangible Assets

3 Months Ended

Sep. 30, 2022

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the three-month period ended September 30, 2022 were as follows (in thousands)


					Optoelectronics
					And
	Security		Healthcare		Manufacturing
	Division		Division		Division		Consolidated
Balance as of June 30, 2022	$	225,555	$	43,187	$	67,615	$	336,357
Goodwill acquired or adjusted during the period		2,240		—		—		2,240
Foreign currency translation adjustment		(217)		(281)		(2,274)		(2,772)
Balance as of September 30, 2022	$	227,578	$	42,906	$	65,341	$	335,825

Intangible assets consisted of the following (in thousands):


		June 30, 2022						September 30, 2022
	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	$	64,096	$	(18,934)	$	45,162	$	65,667	$	(17,472)	$	48,195
Patents	19 years		8,541		(2,987)		5,554		8,598		(3,098)		5,500
Developed technology	10 years		66,901		(31,071)		35,830		66,916		(32,833)		34,083
Customer relationships	7 years		53,736		(32,785)		20,951		53,721		(34,129)		19,592
Total amortizable assets			193,274		(85,777)		107,497		194,902		(87,532)		107,370
Non-amortizable assets:
In-process R&D			533		—		533		533		—		533
Trademarks			30,340		—		30,340		30,299		—		30,299
Total intangible assets		$	224,147	$	(85,777)	$	138,370	$	225,734	$	(87,532)	$	138,202

Amortization expense related to intangible assets was $4.4 million and $4.7 million for the three months ended September 30, 2021 and 2022, respectively.

At September 30, 2022, the estimated future amortization expense for intangible assets was as follows (in thousands):

Fiscal Year


2023 (remaining 9 months)	$	14,084
2024		17,732
2025		17,332
2026		15,870
2027		11,742
Thereafter		30,610
Total	$	107,370

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, 2021 and 2022, we capitalized software development costs in the amounts of $4.1 million and $3.9 million, respectively.