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Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2024

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the nine-month period ended March 31, 2024 were as follows (in thousands):


			Optoelectronics
			And
	Security		Manufacturing		Healthcare
	Division		Division		Division		Consolidated
Balance as of June 30, 2023	$	230,662	$	70,388	$	48,455	$	349,505
Goodwill acquired		2,072		828		—		2,900
Foreign currency translation adjustment		25		(310)		(1)		(286)
Balance as of March 31, 2024	$	232,759	$	70,906	$	48,454	$	352,119

Intangible assets consisted of the following (in thousands):


	June 30, 2023						March 31, 2024
	Gross						Gross
	Carrying		Accumulated		Intangibles		Carrying		Accumulated		Intangibles
	Value		Amortization		Net		Value		Amortization		Net
Amortizable assets:
Software development costs	$	77,844	$	(20,285)	$	57,559	$	86,576	$	(19,986)	$	66,590
Patents		8,636		(3,404)		5,232		9,003		(3,745)		5,258
Developed technology		68,274		(38,353)		29,921		71,208		(44,174)		27,034
Customer relationships		55,780		(39,101)		16,679		51,536		(39,894)		11,642
Total amortizable assets		210,534		(101,143)		109,391		218,323		(107,799)		110,524
Non-amortizable assets:
In-process R&D		533		—		533		—		—		—
Trademarks		30,933		—		30,933		31,532		—		31,532
Total intangible assets	$	242,000	$	(101,143)	$	140,857	$	249,855	$	(107,799)	$	142,056

Amortization expense related to intangible assets was $4.8 million and $5.5 million for the three months ended March 31, 2023 and 2024, respectively. For the nine months ended March 31, 2023 and 2024, amortization expense related to intangible assets was $14.2 million and $15.9 million, respectively.

At March 31, 2024, the estimated future amortization expense for intangible assets was as follows (in thousands):

Fiscal Year


2024 (remaining 3 months)	$	4,922
2025		16,299
2026		12,704
2027		8,522
2028		5,659
Thereafter		62,418
Total	$	110,524

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 of current revenues for a product compared 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, 2023 and 2024, we capitalized software development costs in the amounts of $4.1 million and $4.3 million, respectively. For the nine months ended March 31, 2023 and 2024, we capitalized software development costs in the amounts of $12.0 million and $12.3 million, respectively.