Goodwill and Long-lived Assets

9 Months Ended

Sep. 30, 2022

Notes To Financial Statements [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets During the three months ended September 30, 2022, we completed an immaterial business combination which increased goodwill and existing technology intangible assets.

Goodwill

The change in the carrying value of goodwill for the nine months ended September 30, 2022, categorized by reportable segments, is as follows (in thousands):

	Clear Aligner		Systems and Services		Total
Balance as of December 31, 2021	$	112,208	$	306,339	$	418,547
Additions from acquisition	—		8,729		8,729
Foreign currency translation adjustments	(6,694)		(42,966)		(49,660)
Balance as of September 30, 2022	$	105,514	$	272,102	$	377,616

Intangible Long-Lived Assets

Acquired intangible long-lived assets were as follows, excluding intangibles that were fully amortized (in thousands): 

	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of September 30, 2022		Accumulated Amortization		Accumulated Impairment Loss		Net Carrying Value as of September 30, 2022
Existing technology	10	$	112,051	$	(30,589)	$	(4,328)	$	77,134
Customer relationships	10	21,500		(5,375)		—		16,125
Trademarks and tradenames	10	17,200		(5,925)		(4,179)		7,096
Patents	8	6,511		(5,090)		—		1,421
		$	157,262	$	(46,979)	$	(8,507)	101,776
Foreign currency translation adjustments								(10,065)
Total intangible assets, net 1								$	91,711

1 Also includes $33.5 million of fully amortized intangible assets related to customer relationships.

	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of December 31, 2021		Accumulated Amortization		Accumulated Impairment Loss		Net Carrying Value as of December 31, 2021
Existing technology	10	$	104,531	$	(22,495)	$	(4,328)	$	77,708
Customer relationships	11	55,000		(25,891)		(10,751)		18,358
Trademarks and tradenames	10	17,200		(4,547)		(4,179)		8,474
Patents	8	6,511		(4,495)		—		2,016
		$	183,242	$	(57,428)	$	(19,258)	106,556
Foreign currency translation adjustments								3,153
Total intangible assets, net								$	109,709

The total estimated annual future amortization expense for these acquired intangible assets as of September 30, 2022 is as follows (in thousands):

Fiscal Year Ending December 31,	Amortization
Remainder of 2022	$	4,144
2023	16,501
2024	15,335
2025	14,959
2026	14,353
Thereafter	36,484
Total	$	101,776

Amortization expense for the three months ended September 30, 2022 and 2021 was $3.9 million and $4.4 million, respectively, and amortization expense for the nine months ended September 30, 2022 and 2021 was $12.1 million and $12.2 million, respectively.