Goodwill and Intangible Assets, net

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

In connection with our acquisition of DVS Sciences, Inc. in February 2014, we recognized goodwill of $104.1 million and $112.0 million of developed technology. In the first quarter of 2020, we recognized $2.2 million (Euro 2.0 million) of goodwill from the InstruNor acquisition and $5.4 million (Euro 4.9 million) of developed technology (see Note 3). As the goodwill and developed technology from the InstruNor acquisition are recorded in the functional currency of our European operations, which is the Euro, these balances are revalued each period and the U.S. dollar value of these assets will fluctuate as foreign exchange rates change. We are amortizing InstruNor developed technology over 8.0 years.

Goodwill and intangible assets with indefinite lives are not subject to amortization but are tested for impairment on an annual basis during the fourth quarter or whenever events or changes in circumstances indicate the carrying amount of these assets may not be recoverable. Qualitative assessment includes assessing significant events and circumstances such as our current results, assumptions regarding future performance, strategic initiatives and overall economic factors, including the ongoing global COVID-19 pandemic and macroeconomic developments to determine the existence of potential indicators of impairment and assess if it is more likely than not that the fair value of our reporting unit or intangible assets is less than their carrying value. If indicators of impairment are identified, a quantitative impairment test is performed.

During the first quarter of fiscal 2020, the Company assessed whether the current and potential future impact of the COVID-19 pandemic represented an event which necessitated an impairment review. This assessment included an update of the qualitative and quantitative factors affecting our business. As a result of this assessment, we determined that a triggering event had occurred and a quantitative impairment test was performed. As a result of this quantitative analysis, we determined that the fair values of our goodwill and developed technology intangibles were not less than their carrying values and no impairment was recognized.

Intangible assets also include other patents and licenses, which are included in other non-current assets. Intangible assets, net, were as follows (in thousands):


	September 30, 2020
		Gross Amount		Accumulated Amortization and Translation		Net		Weighted-Average Amortization Period
Developed technology		$	117,380	$	(74,425)	$	42,955	9.9 years
Patents and licenses		$	11,274	$	(9,030)	$	2,244	7.8 years



	December 31, 2019
	Gross Amount		Accumulated Amortization and Translation		Net		Weighted-Average Amortization Period
Developed technology	$	112,000	$	(65,800)	$	46,200	10.0 years
Patents and licenses	$	11,274	$	(8,342)	$	2,932	7.8 years

Total amortization expense for the three months ended September 30, 2020 and 2019 was $3.2 million and $3.0 million, respectively. Amortization of intangibles was $9.6 million and $9.2 million for the nine months ended September 30, 2020 and 2019, respectively.

Based on the carrying value of intangible assets, net, as of September 30, 2020, the amortization expense is expected to be as follows (in thousands):


Fiscal Year	Developed Technology Amortization Expense		Patents and Licenses Amortization Expense		Total
2020 (remainder of the year)	$	2,978	$	229	$	3,207
2021	11,911		760		12,671
2022	11,911		677		12,588
2023	11,911		571		12,482
2024	2,111		7		2,118
Thereafter	2,133		—		2,133
Total	$	42,955	$	2,244	$	45,199