XML 21 R11.htm IDEA: XBRL DOCUMENT

Note 5 - Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Text Block]

Note 5 – Goodwill and Other Intangible Assets

Goodwill at March 31, 2021 and December 31, 2020 was as follows:

(in thousands)	*Three Months Ended March 31, 2021*
Balance as of the beginning of the period	$	128,752
Goodwill acquired during the period		275,438
Foreign currency translation adjustments		(4,764	)
Balance as of the end of the period	$	399,426

Goodwill increased $275.4 million during the three months ended March 31, 2021 as a result of our acquisition of 3D Hubs. Goodwill has been allocated to the acquired 3D Hubs entities consisting of goodwill of €104.0 million in Europe and $148.8 million in the United States as of the date of the acquisition. The Euro denominated goodwill is translated at the end of each period using the current exchange rates resulting in a foreign currency translation adjustment that is recorded as a component of Other Comprehensive Income. The goodwill related to the acquisition is not deductible for tax purposes.

Intangible assets other than goodwill at March 31, 2021 and December 31, 2020 were as follows:

	*March 31, 2021*							*December 31, 2020*							*Useful*	*Weighted Average*
(in thousands)	*Gross*		*Accumulated Amortization*			*Net*		*Gross*		*Accumulated Amortization*			*Net*		*Life (in years)*	*Useful Life Remaining (in years)*
Intangible assets with finite lives:
Marketing assets	$	930	$	(643	)	$	287	$	930	$	(620	)	$	310	10.0	3.0
Non-compete agreement		850		(264	)		586		270		(238	)		32	2.0 - 5.0	3.5
Software technology		13,229		(3,987	)		9,242		13,229		(3,645	)		9,584	10.0	7.3
Software platform		30,916		(598	)		30,318		-		-			-	10.0	9.8
Tradenames		364		(23	)		341		-		-			-	3.0	2.8
Customer relationships		12,281		(6,172	)		6,109		10,070		(5,646	)		4,424	3.0 - 9.0	2.6
Total intangible assets	$	58,570	$	(11,687	)	$	46,883	$	24,499	$	(10,149	)	$	14,350

Intangible assets increased $34.7 million during the three months ended March 31, 2021 as a result of our acquisition of 3D Hubs. Intangible assets have been allocated to the acquired 3D Hubs entities consisting of intangible assets of €13.1 million in Europe and $18.7 million in the United States as of the date of the acquisition. The Euro denominated intangible assets are translated at the end of each period using the current exchange rates resulting in a foreign currency translation adjustment that is recorded as a component of Other Comprehensive Income. Foreign currency losses related to intangible assets were $0.6 million as of March 31, 2021. There was no foreign currency translation impact as of December 31, 2020. Amortization expense for intangible assets was $1.5 million and $0.8 million for the three months ended March 31, 2021 and 2020, respectively.

Estimated aggregated amortization expense based on the current carrying value of the amortizable intangible assets and current exchange rates is as follows:

(in thousands)	*Estimated Amortization Expense*
Remaining 2021	$	5,311
2022		7,082
2023		6,879
2024		4,665
2025		4,577
Thereafter		18,369
Total estimated amortization expense	$	46,883