Balance Sheet Components

3 Months Ended

Mar. 31, 2022

Balance Sheet Related Disclosures [Abstract]

Goodwill

Goodwill was $704.4 million and $707.9 million as of March 31, 2022 and December 31, 2021, respectively. The change in the carrying amounts of goodwill during the three months ended March 31, 2022 were due to foreign currency translation and measurement period adjustments. The Company has not recorded any impairment related to goodwill.

Intangible Assets, Net

Intangible assets include finite-lived product technology, customer relationships, licenses and trade names and indefinite-lived in-process research and development. Intangible assets consisted of the following (in thousands of dollars):


	March 31, 2022						December 31, 2021						Weighted Average Amortization Period (Years)
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Percepta product technology	$	16,000	$	(7,467)	$	8,533	$	16,000	$	(7,200)	$	8,800	15
Prosigna product technology	4,120		(641)		3,479		4,120		(572)		3,548		15
Prosigna customer relationships	2,430		(1,134)		1,296		2,430		(1,013)		1,417		5
nCounter Dx license	46,880		(7,292)		39,588		46,880		(6,511)		40,369		15
LymphMark product technology	990		(330)		660		990		(295)		695		7
Decipher product technology	90,000		(9,484)		80,516		90,000		(7,234)		82,766		10
Decipher trade names	4,000		(843)		3,157		4,000		(643)		3,357		5
HalioDx developed technology	44,781		(2,961)		41,820		45,640		(1,877)		43,763		10
HalioDx customer relationships	4,778		(556)		4,222		4,870		(352)		4,518		6
HalioDx customer backlog	6,778		(1,121)		5,657		6,908		(710)		6,198		4
Total finite-lived intangibles	220,757		(31,829)		188,928		221,838		(26,407)		195,431		10.9
In-process research and development	7,300		—		7,300		7,300		—		7,300
Total intangible assets	$	228,057	$	(31,829)	$	196,228	$	229,138	$	(26,407)	$	202,731

Amortization of the finite-lived intangible assets is recognized on a straight-line basis. Amortization expense of $5.5 million and $1.8 million was recognized for the three months ended March 31, 2022 and 2021, respectively.

The estimated future aggregate amortization expense as of March 31, 2022 is as follows (in thousands of dollars):


Year Ending December 31,	Amounts
2022 remainder of year	$	16,431
2023	21,908
2024	21,868
2025	20,725
2026	18,844
Thereafter	89,152
Total	$	188,928

Supplies and Inventory

As of March 31, 2022 and December 31, 2021, supplies and inventory consisted of $9.1 million and $8.2 million, respectively, of lab supplies and reagents consumed in the performance of testing services, and $3.3 million and $3.0 million, respectively, of inventory related to raw materials consumed in contract manufacturing process as well as finished diagnostic kits sourced from third parties related to product sales.

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands of dollars):


	March 31, 2022		December 31, 2021
Accrued compensation expenses	$	29,525	$	30,792
Accrued other	9,018		8,683
Total accrued liabilities	$	38,543	$	39,475