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Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]  
Summary of Goodwill

The following table presents details of the Company’s goodwill for the year ended December 31, 2016 (in thousands):

 

 

 

CareDx

 

 

Allenex

 

 

Total

 

Balance as of December 31, 2015

 

$

12,005

 

 

$

 

 

$

12,005

 

Goodwill acquired

 

 

 

 

16,922

 

 

 

16,922

 

Goodwill impairment

 

 

 

 

(13,021

)

 

 

(13,021

)

Foreign currency translation adjustments

 

 

 

 

(2,067

)

 

 

(2,067

)

Balance as of December 31, 2016

 

$

12,005

 

 

$

1,834

 

 

 

13,839

 

 

Summary of Intangible Assets

The following tables present details of the Company’s intangible assets as of December 31, 2016 (in thousands):

 

 

 

December 31, 2016

 

 

 

Acquisition

Cost

 

 

Accumulated

Amortization

 

 

Foreign

Currency

Translation

 

 

Net

Carrying

Amount

 

 

Weighted

Average

Remaining

Useful Life

(In Years)

 

Intangible assets with finite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

12,650

 

 

$

(576

)

 

$

(1,355

)

 

$

10,719

 

 

 

14.0

 

Developed technology: SSP

 

 

11,650

 

 

 

(804

)

 

 

(1,233

)

 

 

9,613

 

 

 

9.0

 

Acquired technology – QTYPE (a)

 

 

4,510

 

 

 

(74

)

 

 

(490

)

 

 

3,946

 

 

 

14.0

 

Trademarks

 

 

2,260

 

 

 

(103

)

 

 

(242

)

 

 

1,915

 

 

 

14.0

 

Acquired contracts

 

490

 

 

 

(164

)

 

 

(45

)

 

 

281

 

 

 

1.3

 

Total intangible assets with finite lives

 

$

31,560

 

 

$

(1,721

)

 

$

(3,365

)

 

$

26,474

 

 

 

 

 

Acquired in-process technology―dd-cfDNA

 

 

6,650

 

 

 

 

 

 

 

 

 

6,650

 

 

 

 

Total intangible assets

 

$

38,210

 

 

$

(1,721

)

 

$

(3,365

)

 

$

33,124

 

 

 

 

 

 

(a)

QTYPE was initially classified as acquired in-process technology upon the acquisition of Allenex on April 14, 2016, and was reclassified as an intangible asset with a finite life when QTYPE was commercially launched at the end of September 2016.

Summary of Estimated Future Amortization Expense of Intangible Assets

The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of December 31, 2016 (in thousands):

 

Years Ending December 31,

 

Cost of

Product

 

 

Sales and

Marketing

 

 

Total

 

2017

 

$

1,568

 

 

$

902

 

 

$

2,470

 

2018

 

 

1,413

 

 

 

902

 

 

 

2,315

 

2019

 

 

1,350

 

 

 

902

 

 

 

2,252

 

2020

 

 

1,350

 

 

 

902

 

 

 

2,252

 

2021

 

 

1,350

 

 

 

902

 

 

 

2,252

 

Thereafter

 

 

6,809

 

 

 

8,124

 

 

 

14,933

 

Total future amortization expense

 

$

13,840

 

 

$

12,634

 

 

$

26,474