Goodwill and Long-lived Assets

9 Months Ended

Sep. 30, 2020

Notes To Financial Statements [Abstract]

Goodwill

The change in the carrying value of goodwill for the nine months ended September 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		296,681		340,181
Adjustments 2	2,695		20,542		23,237
Balance as of September 30, 2020	$	110,119	$	317,223	$	427,342

1 Includes goodwill adjustments within the measurement period (up to one year from acquisition date). Refer to Note 4 "Business Combination" of the Notes to Condensed Consolidated Financial Statements for additional details.

2 Adjustments 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 September 30, 2020		Accumulated Amortization		Accumulated Impairment Loss		Net Carrying Value as of September 30, 2020
Trademarks and tradenames	10	$	16,900	$	(2,849)	$	(4,179)	$	9,872
Existing technology	10	99,600		(10,603)		(4,328)		84,669
Customer relationships	11	55,000		(20,876)		(10,751)		23,373
Other 1	5	14,913		(11,885)		—		3,028
		$	186,413	$	(46,213)	$	(19,258)	120,942
Foreign currency translation								7,662
Total intangible assets 2								$	128,604

1 Includes reacquired rights, patents 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 September 30, 2020 is as follows (in thousands):


Fiscal Year Ending December 31,	Amortization
Remainder of 2020	$	3,907
2021	15,622
2022	14,366
2023	13,745
2024	12,805
Thereafter	60,497
Total	$	120,942

Amortization expense for the three months ended September 30, 2020 and 2019 was $4.1 million and $1.5 million, respectively, and amortization expense for the nine months ended September 30, 2020 and 2019 was $9.5 million and $4.5 million, respectively.