Goodwill and Intangible Assets, net

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

In connection with our acquisition of DVS 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. 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 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. There have been no indicators of impairment during the three months ended March 31, 2022.

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


	March 31, 2022
		Gross Amount		Accumulated Amortization		Net		Weighted-Average Amortization Period
Developed technology		$	117,392	$	(92,517)	$	24,875	9.9 years
Patents and licenses		$	11,259	$	(10,171)	$	1,088	7.0 years



	December 31, 2021
	Gross Amount		Accumulated Amortization		Net		Weighted-Average Amortization Period
Developed technology	$	117,503	$	(89,576)	$	27,927	9.9 years
Patents and licenses	$	11,257	$	(10,000)	$	1,257	7.0 years

Total amortization expense for the three months ended March 31, 2022 and 2021 was $3.1 million and $3.2 million, respectively.

Based on the carrying value of intangible assets as of March 31, 2022, the amortization expense is expected to be as follows (in thousands):


Fiscal Year	Developed Technology Amortization Expense		Patents and Licenses Amortization Expense		Total
2022 remainder of the year	$	8,905	$	508	$	9,413
2023	11,874		572		12,446
2024	2,074		8		2,082
2025	674		—		674
2026	674		—		674
Thereafter	674		—		674
Total	$	24,875	$	1,088	$	25,963