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Goodwill and Intangible Assets

3 Months Ended

Sep. 30, 2024

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the three-month period ended September 30, 2024 were as follows (in thousands):


			Optoelectronics
			and
	Security		Manufacturing		Healthcare
	Division		Division		Division		Consolidated
Balance as of June 30, 2024	$	232,215	$	70,807	$	48,458	$	351,480
Goodwill acquired during the period (see Note 2)		28,372		—		—		28,372
Foreign currency translation adjustment		223		1,201		168		1,592
Balance as of September 30, 2024	$	260,810	$	72,008	$	48,626	$	381,444

Intangible assets consisted of the following (in thousands):


	June 30, 2024						September 30, 2024
	Gross						Gross
	Carrying		Accumulated		Intangibles		Carrying		Accumulated		Intangibles
	Value		Amortization		Net		Value		Amortization		Net
Amortizable assets:
Software development costs	$	79,228	$	(10,646)	$	68,582	$	83,339	$	(11,353)	$	71,986
Patents		9,116		(3,861)		5,255		9,265		(3,975)		5,290
Developed technology		70,186		(45,740)		24,446		97,284		(47,801)		49,483
Customer relationships		51,113		(41,421)		9,692		42,901		(26,051)		16,850
Total amortizable assets		209,643		(101,668)		107,975		232,789		(89,180)		143,609
Non-amortizable assets:
Trademarks		31,554		—		31,554		39,613		—		39,613
Total intangible assets	$	241,197	$	(101,668)	$	139,529	$	272,402	$	(89,180)	$	183,222

During the three months ended September 30, 2024 intangible assets of $43.9 million were included in the business acquisition described in Note 2.

Amortization expense related to intangible assets was $4.7 and $4.8 million for the three months ended September 30, 2023 and 2024, respectively.

At September 30, 2024, the estimated future amortization expense for amortizable intangible assets was as follows (in thousands):

Fiscal Year


2025 (remaining 9 months)	$	15,814
2026		17,965
2027		16,356
2028		15,532
2029		13,533
Thereafter		64,409
Total	$	143,609

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, 2023 and 2024, we capitalized software development costs in the amounts of $4.0 million and $4.2 million, respectively.