Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2023

Notes To Financial Statements [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill

The change in the carrying value of goodwill for the nine months ended September 30, 2023, categorized by reportable segments, is as follows (in thousands):

	Clear Aligner		Systems and Services		Total
Balance as of December 31, 2022	$	109,480	$	298,071	$	407,551
Foreign currency translation adjustments	(479)		(2,777)		(3,256)
Balance as of September 30, 2023	$	109,001	$	295,294	$	404,295

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, 2023		Accumulated Amortization		Accumulated Impairment Loss		Net Carrying Value as of September 30, 2023
Existing technology	10	$	112,051	$	(42,383)	$	(4,328)	$	65,340
Customer relationships	10	21,500		(7,525)		—		13,975
Trademarks and tradenames	10	17,200		(7,820)		(4,122)		5,258
Patents	8	6,511		(5,884)		—		627
		$	157,262	$	(63,612)	$	(8,450)	85,200
Foreign currency translation adjustments								(2,459)
Total intangible assets, net 1								$	82,741

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, 2022		Accumulated Amortization		Accumulated Impairment Loss		Net Carrying Value as of December 31, 2022
Existing technology	10	$	112,051	$	(33,537)	$	(4,328)	$	74,186
Customer relationships	10	21,500		(5,913)		—		15,587
Trademarks and tradenames	10	17,200		(6,442)		(4,122)		6,636
Patents	8	6,511		(5,288)		—		1,223
		$	157,262	$	(51,180)	$	(8,450)	97,632
Foreign currency translation adjustments								(1,912)
Total intangible assets, net 1								$	95,720

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

The total estimated annual future amortization expense for these acquired intangible assets as of September 30, 2023 is as follows (in thousands):

Fiscal Year Ending December 31,	Amortization
Remainder of 2023	$	4,069
2024	15,335
2025	14,959
2026	14,353
2027	11,992
Thereafter	24,492
Total	$	85,200

Amortization expense for the three months ended September 30, 2023 and 2022 was $4.2 million and $3.9 million, respectively, and amortization expense for the nine months ended September 30, 2023 and 2022 was $12.4 million and $12.1 million, respectively.