XML 52 R13.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets

Goodwill

The change in the carrying value of goodwill for the year ended December 31, 2019 and 2018, all attributable to our Clear Aligner reporting unit, is as follows (in thousands):
 
Total
Balance as of December 31, 2017
$
64,614

Adjustments 1
(585
)
Balance as of December 31, 2018
64,029

Adjustments 1
(105
)
Balance as of December 31, 2019
$
63,924



1  
Adjustments were related to foreign currency translation within the measurement period.

Based on the qualitative assessments performed, there were no impairments to goodwill in 2019 or 2018.

Intangible Long-Lived Assets

We amortize our intangible assets over their estimated useful lives. We evaluate long-lived assets, which includes property, plant and equipment and intangible assets, for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The carrying value is not recoverable if it exceeds the undiscounted cash flows resulting from the use of the asset and its eventual disposition. Our estimates of future cash flows attributable to our long-lived assets require significant judgment based on our historical and anticipated results and are subject to many factors. Factors we consider important which could trigger an impairment review include significant negative industry or economic trends, significant loss of customers and changes in the competitive environment of our intraoral scanning business.

There were no triggering events in 2019 or 2018 that would cause impairments of our 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
December 31, 2019
 
Accumulated
Amortization
 
Accumulated Impairment Loss
 
Net Carrying
Value as of
December 31, 2019
Trademarks
15
 
$
7,100

 
$
(2,045
)
 
$
(4,179
)
 
$
876

Existing technology
13
 
12,600

 
(5,831
)
 
(4,328
)
 
2,441

Customer relationships
11
 
33,500

 
(18,405
)
 
(10,751
)
 
4,344

Reacquired rights
3
 
7,500

 
(7,059
)
 

 
441

Patents
8
 
6,796

 
(3,165
)
 

 
3,631

Other
2
 
618

 
(583
)
 

 
35

Total intangible assets
 
 
$
68,114

 
$
(37,088
)
 
$
(19,258
)
 
$
11,768

 
Weighted Average Amortization Period (in years)
 
Gross Carrying
Amount as of
December 31, 2018
 
Accumulated
Amortization
 
Accumulated Impairment Loss
 
Net Carrying
Value as of
December 31, 2018
Trademarks
15
 
$
7,100

 
$
(1,907
)
 
$
(4,179
)
 
$
1,014

Existing technology
13
 
12,600

 
(5,268
)
 
(4,328
)
 
3,004

Customer relationships
11
 
33,500

 
(16,542
)
 
(10,751
)
 
6,207

Reacquired rights
3
 
7,500

 
(4,341
)
 

 
3,159

Patents
8
 
6,796

 
(2,334
)
 

 
4,462

Other
2
 
618

 
(544
)
 

 
74

Total intangible assets
 
 
$
68,114

 
$
(30,936
)
 
$
(19,258
)
 
$
17,920


The total estimated annual future amortization expense for these acquired intangible assets as of December 31, 2019 is as follows (in thousands):
Fiscal Year
 
Amortization
2020
 
$
3,845

2021
 
3,372

2022
 
2,116

2023
 
1,495

2024
 
555

Thereafter
 
385

Total
 
$
11,768



Amortization expense was $5.9 million, $6.0 million and $6.2 million for the year ended December 31, 2019, 2018 and 2017, respectively.