Goodwill, Intangible Assets and Impairment Charges

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Intangible Assets and Impairment Charges

6. Goodwill, Intangible Assets and Impairment Charges

Goodwill

The following table summarizes changes in goodwill during the year ended December 31, 2024 (in thousands):

	Amount
Balance at beginning of year	$	484,507
Goodwill from current year acquisitions		106,761
Effect of foreign exchange rate changes		(7,170	)
Balance at end of year	$	584,098

Goodwill by reportable segment as of December 31, 2024 was as follows (in thousands):

	Reportable Segment
	Automation Enabling Technologies			Medical Solutions			Total
Goodwill	$	439,980		$	295,347		$	735,327
Accumulated impairment of goodwill		(119,507	)		(31,722	)		(151,229	)
Total	$	320,473		$	263,625		$	584,098

Goodwill by reportable segment as of December 31, 2023 was as follows (in thousands):

	Reportable Segment
	Automation Enabling Technologies			Medical Solutions			Total
Goodwill	$	433,525		$	202,211		$	635,736
Accumulated impairment of goodwill		(119,507	)		(31,722	)		(151,229	)
Total	$	314,018		$	170,489		$	484,507

The segment change discussed in Note 2, impacted the composition of the Company's reporting units, which resulted in a reallocation of goodwill between the Automation Enabling Technologies and Medical Solutions segments. The Company allocated $9.4 million and $22.7 million to the Automation Enabling Technologies segment and the Medical Solutions segment, respectively, based on the estimated relative fair values of the reporting units. The Company also assessed goodwill for impairment for the reporting units both before and after the reallocation and determined that there was no impairment.

Intangible Assets

Intangible assets as of December 31, 2024 and 2023, respectively, are summarized as follows (dollar amounts in thousands):

	December 31, 2024
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and developed technologies	$	218,867	$	(159,041	)	$	59,826		7.6
Customer relationships		265,156		(158,938	)		106,218		13.2
Trademarks and trade names		23,367		(16,594	)		6,773		9.2
Amortizable intangible assets		507,390		(334,573	)		172,817		11.1
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Total	$	520,417	$	(334,573	)	$	185,844

	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and developed technologies	$	187,092	$	(146,342	)	$	40,750		9.6
Customer relationships		225,183		(142,478	)		82,705		14.4
Trademarks and trade names		23,628		(15,088	)		8,540		9.5
Amortizable intangible assets		435,903		(303,908	)		131,995		12.6
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Total	$	448,930	$	(303,908	)	$	145,022

All definite-lived intangible assets are amortized either on a straight-line basis or an economic benefit basis over their remaining estimated useful life. Amortization expense for patents and developed technologies is included in cost of revenue in the accompanying consolidated statements of operations. Amortization expense for customer relationships and definite-lived trademarks, trade names and other intangibles is included in operating expenses in the accompanying consolidated statements of operations. Amortization expense for the periods presented was as follows (in thousands):

	Year Ended December 31,
	2024		2023		2022
Amortization expense – cost of revenue	$	14,773	$	12,150	$	13,270
Amortization expense – operating expenses		25,794		20,445		26,338
Total amortization expense	$	40,567	$	32,595	$	39,608

Estimated future amortization expense for each of the five succeeding years and thereafter is as follows (in thousands):

Year Ending December 31,	Cost of Revenue		Operating Expenses		Total
2025	$	14,222	$	22,173	$	36,395
2026		13,384		19,880		33,264
2027		10,568		15,768		26,336
2028		8,837		12,697		21,534
2029		6,064		9,148		15,212
Thereafter		6,751		33,325		40,076
Total	$	59,826	$	112,991	$	172,817

Impairment Charges

The Company did not have any goodwill or indefinite-lived intangible asset impairment charges during the years ended December 31, 2024, 2023, or 2022.