Intangible assets and goodwill

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The Company's intangible assets consist of products acquired via business combinations or asset acquisitions. The following table summarizes the Company's Intangible assets, net:


	Weighted Average Useful Life in Years	June 30, 2023						December 31, 2022
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount (1)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Products	13.6	$	849.1	$	256.3	$	592.8	$	982.1	$	253.3	$	728.8
Customer relationships	0.0	28.6		28.6		—		28.6		28.6		—
CDMO	0.0	5.5		5.5		—		5.5		5.5		—
Total intangible assets		$	883.2	$	290.4	$	592.8	$	1,016.2	$	287.4	$	728.8

(1) During the six months ended June 30, 2023, the Company sold $102.9 million of intangible assets, net as part of the sale of its travel health business to Bavarian Nordic. See Note 3, "Divestiture" for more information on the sale of the business.

Amortization expense associated with the Company's intangible assets was recorded as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Amortization expense	$	16.1	$	14.0	$	33.1	$	28.0

The table below summarizes the changes in the carrying amount of goodwill by reportable segment:


	Products (1)		Services (2)		Total



Balance at December 31, 2022	$	218.2	$	—	$	218.2


Balance at June 30, 2023	$	218.2	$	—	$	218.2

(1) Amounts for the Company's Products segment include gross carrying values of $259.9 million as of June 30, 2023 and December 31, 2022 and accumulated impairment losses of $41.7 million.

(2) Amounts for the Company's Services segment include gross carrying values of $6.7 million as of June 30, 2023 and December 31, 2022, and accumulated impairment losses of $6.7 million.

The Company has $218.2 million of total goodwill which is attributable to its Products segment. Quantitative impairment assessments performed during the quarter ended June 30, 2023 indicated that the fair value of the reporting unit was approximately 14% in excess over its carrying value as of the assessment date. There is the risk of future impairments in our reporting unit as any further deterioration in their performance compared to forecast, changes in order volumes or delivery schedules for major customers, decline in our stock price, as well as any changes in economic forecasts and expected recovery in the biopharmaceutical industry, may require the Company to complete additional impairment tests in future quarters and could result in a reporting unit’s fair value falling below carrying value in subsequent quarters. In the event the Company experiences factors that it believes indicate a decline in fair value, including negative changes to long-term growth rates or if discount rates increase, we may be required to record impairments of goodwill and other identified intangible assets. Further, if the composition of the Company’s reporting units' assets and liabilities were to change and result in an increase in a reporting unit’s carrying value, it could lead to additional impairment testing and further impairment losses.