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Goodwill and Intangible Assets

6 Months Ended

Dec. 31, 2024

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the six-month period ended December 31, 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)		31,691		—		—		31,691
Foreign currency translation adjustment		(271)		(717)		(17)		(1,005)
Balance as of December 31, 2024	$	263,635	$	70,090	$	48,441	$	382,166

Intangible assets consisted of the following (in thousands):


	June 30, 2024						December 31, 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	$	84,885	$	(9,088)	$	75,797
Patents		9,116		(3,861)		5,255		9,364		(4,092)		5,272
Developed technology		70,186		(45,740)		24,446		96,984		(50,442)		46,542
Customer relationships		51,113		(41,421)		9,692		42,060		(27,255)		14,805
Total amortizable assets		209,643		(101,668)		107,975		233,293		(90,877)		142,416
Non-amortizable assets:
Trademarks		31,554		—		31,554		39,538		—		39,538
Total intangible assets	$	241,197	$	(101,668)	$	139,529	$	272,831	$	(90,877)	$	181,954

Amortization expense related to intangible assets was $5.7 million and $5.6 million for the three months ended December 31, 2023 and 2024, respectively. Amortization expense related to intangible assets was $10.4 million for each of the six-month periods ended December 31, 2023 and 2024.

During the six months ended December 31, 2024, intangible assets of $43.9 million were from the business acquisition described in Note 2.

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

Fiscal Year


2025 (remaining 6 months)	$	10,388
2026		18,224
2027		16,766
2028		16,068
2029		13,953
Thereafter		67,017
Total	$	142,416

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 the developed product divided by total current and anticipated future revenues for that developed 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 December 31, 2023 and 2024, we capitalized software development costs in the amounts of $4.0 million and $4.6 million, respectively. For the six months ended December 31, 2023 and 2024, we capitalized software development costs in the amounts of $8.0 million and $8.8 million, respectively.