Goodwill and Long-lived Assets

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Goodwill

The change in the carrying value of goodwill for the six months ended June 30, 2018, all attributable to our Clear Aligner reporting unit, is as follows (in thousands):



	Total
Balance as of December 31, 2017	$	64,614
Adjustments¹	(434		)
Balance as of June 30, 2018	$	64,180

¹The adjustments to goodwill during the period were a result of foreign currency translation.

During the fourth quarter of fiscal 2017, we performed the annual goodwill impairment testing and found no impairment as the fair value of our Clear Aligner reporting unit was significantly in excess of the carrying value.

Intangible Long-Lived Assets

Acquired intangible long-lived assets are being amortized as follows (in thousands):



	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of June 30, 2018		Accumulated Amortization			Accumulated Impairment Loss			Net Carrying Value as of June 30, 2018
Trademarks	15	$	7,100	$	(1,838	)	$	(4,179	)	$	1,083
Existing technology	13	12,600		(4,986		)	(4,328		)	3,286
Customer relationships	11	33,500		(15,612		)	(10,751		)	7,137
Reacquired rights	3	7,500		(2,894		)	—			4,606
Patents	8	6,796		(1,919		)	—			4,877
Other	2	618		(480		)	—			138
Total intangible assets		$	68,114	$	(27,729	)	$	(19,258	)	$	21,127



	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of December 31, 2017		Accumulated Amortization			Accumulated Impairment Loss			Net Carrying Value as of December 31, 2017
Trademarks	15	$	7,100	$	(1,769	)	$	(4,179	)	$	1,152
Existing technology	13	12,600		(4,704		)	(4,328		)	3,568
Customer relationships	11	33,500		(14,681		)	(10,751		)	8,068
Reacquired rights	3	7,500		(1,356		)	—			6,144
Patents	8	6,798		(1,504		)	—			5,294
Other	2	618		(390		)	—			228
Total intangible assets		$	68,116	$	(24,404	)	$	(19,258	)	$	24,454

The total estimated annual future amortization expense for these acquired intangible assets as of June 30, 2018 is as follows (in thousands):



Fiscal Year Ending December 31,	Amortization
Remainder of 2018	$	3,149
2019	6,184
2020	3,855
2021	3,389
2022	2,116
Thereafter	2,434
Total	$	21,127

Amortization for the three months ended June 30, 2018 and 2017 was $1.5 million and $1.8 million, respectively, and amortization for the six months ended June 30, 2018 and 2017 was $3.0 million and $3.2 million, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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