XML 27 R11.htm IDEA: XBRL DOCUMENT

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2023

4. GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill by segment for fiscal 2022 and 2023 are 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		19,436		—		—		19,436
Foreign currency translation adjustment		(307)		(397)		(2,679)		(3,383)
Balance as of June 30, 2022	$	225,555	$	43,187	$	67,615	$	336,357
Goodwill acquired or adjusted during the period		5,021		5,161		2,574		12,756
Foreign currency translation adjustment		86		107		199		392
Balance as of June 30, 2023	$	230,662	$	48,455	$	70,388	$	349,505

Intangible assets consisted of the following (dollar amounts in thousands):


		June 30, 2022						June 30, 2023
	Weighted	Gross						Gross
	Average	Carrying		Accumulated		Intangibles		Carrying		Accumulated		Intangibles
	Lives	Value		Amortization		Net		Value		Amortization		Net
Amortizable assets:
Software development costs	7-8 years	$	64,096	$	(18,934)	$	45,162	$	77,844	$	(20,285)	$	57,559
Patents	19 years		8,541		(2,987)		5,554		8,636		(3,404)		5,232
Developed technology	10 years		66,901		(31,071)		35,830		68,274		(38,353)		29,921
Customer relationships	7-8 years		53,736		(32,785)		20,951		55,780		(39,101)		16,679
Total amortizable assets			193,274		(85,777)		107,497		210,534		(101,143)		109,391
Non-amortizable assets:
In-process R&D			533		—		533		533		—		533
Trademarks			30,340		—		30,340		30,933		—		30,933
Total intangible assets		$	224,147	$	(85,777)	$	138,370	$	242,000	$	(101,143)	$	140,857

Amortization expense related to intangible assets was $21.5 million, $17.7 million and $19.0 million for fiscal 2021, 2022 and 2023, respectively.

At June 30, 2023, the estimated future amortization expense was as follows (in thousands):


2024	$	18,758
2025		16,042
2026		13,112
2027		9,054
2028		6,544
Thereafter		45,881
Total	$	109,391

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. During fiscal 2021, 2022 and 2023, we capitalized software development costs in the amounts of $12.9 million, $15.2 million and $16.2 million, respectively.