Goodwill and Long-lived Assets

6 Months Ended

Jun. 30, 2020

Notes To Financial Statements [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill

The change in the carrying value of goodwill for the six months ended June 30, 2020, categorized by reportable segments, is as follows (in thousands):

	Clear Aligner		Systems and Services		Total
Balance as of December 31, 2019	$	63,924	$	—	$	63,924
Additions from exocad acquisition1	43,500		300,738		344,238
Adjustments 2	574		6,800		7,374
Balance as of June 30, 2020	$	107,998	$	307,538	$	415,536

¹ Refer to Note 4 "Business Combination" of the Notes to Condensed Consolidated Financial Statements for additional details

² Adjustments were related to foreign currency translation within the measurement period

During the fourth quarter of fiscal 2019, we performed our 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, 2020		Accumulated Amortization		Accumulated Impairment Loss		Net Carrying Value as of June 30, 2020
Trademarks and tradenames	10	$	16,900	$	(2,514)	$	(4,179)	$	10,207
Existing technology	10	99,600		(5,936)		(4,328)		89,336
Customer relationships	11	55,000		(19,348)		(10,751)		24,901
Other 1	5	15,314		(12,083)		—		3,231
Total intangible assets 2		$	186,814	$	(39,881)	$	(19,258)	$	127,675

¹ Includes reacquired rights, patents, IPR&D and other intangible assets

² Refer to Note 4 "Business Combination" of the Notes to Condensed Consolidated Financial Statements for additional details on intangible assets from our exocad acquisition.

	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

The total estimated annual future amortization expense for these acquired intangible assets as of June 30, 2020 is as follows (in thousands):

Fiscal Year Ending December 31,	Amortization
Remainder of 2020	$	8,178
2021	15,899
2022	14,642
2023	14,022
2024	13,081
Thereafter	61,853
Total	$	127,675

Amortization expense for the three months ended June 30, 2020 and 2019 was $4.1 million and $1.5 million, respectively, and amortization expense for the six months ended June 30, 2020 and 2019 was $5.4 million and $3.0 million, respectively.