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Goodwill and Intangible Assets

3 Months Ended

Sep. 30, 2023

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the three-month period ended September 30, 2023 were as follows (in thousands):


					Optoelectronics
					And
	Security		Healthcare		Manufacturing
	Division		Division		Division		Consolidated
Balance as of June 30, 2023	$	230,662	$	48,455	$	70,388	$	349,505
Foreign currency translation adjustment		(132)		(103)		(859)		(1,094)
Balance as of September 30, 2023	$	230,530		48,352		69,529		348,411

Intangible assets consisted of the following (in thousands):


		June 30, 2023						September 30, 2023
	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	$	77,844	$	(20,285)	$	57,559		81,845		(21,145)		60,700
Patents	19 years		8,636		(3,404)		5,232		8,742		(3,515)		5,227
Developed technology	10 years		68,274		(38,353)		29,921		68,246		(40,186)		28,060
Customer relationships	7 years		55,780		(39,101)		16,679		55,570		(40,833)		14,737
Total amortizable assets			210,534		(101,143)		109,391		214,403		(105,679)		108,724
Non-amortizable assets:
In-process R&D			533		—		533		533		—		533
Trademarks			30,933		—		30,933		30,954		—		30,954
Total intangible assets		$	242,000	$	(101,143)	$	140,857		245,890		(105,679)		140,211

Amortization expense related to intangible assets was $4.7 million in each of the three months ended September 30, 2022 and 2023.

At September 30, 2023, the estimated future amortization expense for amortizable intangible assets was as follows (in thousands):

Fiscal Year


2024 (remaining 9 months)	$	14,187
2025		15,879
2026		12,705
2027		8,741
2028		5,953
Thereafter		51,259
Total	$	108,724

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, 2022 and 2023, we capitalized software development costs in the amounts of $3.9 million and $4.0 million, respectively.