INTANGIBLE ASSETS AND GOODWILL

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of March 31, 2020:


(In thousands)	Weighted Average Remaining Life (Years)	Cost		Accumulated Amortization		Net Balance at March 31, 2020
Finite-lived intangible assets
Trade name	15.7	$	100,700	$	(2,535)	$	98,165
Customer relationships	13.6	2,700		(269)		2,431
Patents	8.6	22,689		(6,539)		16,150
Acquired developed technology	9.7	814,171		(32,510)		781,661
Supply agreements	7.3	30,000		(1,560)		28,440
Internally developed technology	2.4	1,508		(449)		1,059
Total finite-lived intangible assets		971,768		(43,862)		927,906
In-process research and development	n/a	200,000		—		200,000
Internally developed technology in process	n/a	355		—		355
Total intangible assets		$	1,172,123	$	(43,862)	$	1,128,261

The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of December 31, 2019:


(In thousands)	Weighted Average Remaining Life (Years)	Cost		Accumulated Amortization		Net Balance at December 31, 2019
Finite-lived intangible assets
Trade name	15.9	$	100,700	$	(961)	$	99,739
Customer relationships	13.6	2,700		(224)		2,476
Patents	8.8	22,690		(5,974)		16,716
Acquired developed technology	9.9	806,371		(12,345)		794,026
Supply agreements	7.5	30,000		(571)		29,429
Internally developed technology	2.5	1,229		(336)		893
Total finite-lived intangible assets		963,690		(20,411)		943,279
In-process research and development	n/a	200,000		—		200,000
Internally developed technology in process	n/a	271		—		271
Total intangible assets		$	1,163,961	$	(20,411)	$	1,143,550

As of March 31, 2020, the estimated future amortization expense associated with the Company’s finite-lived intangible assets for each of the five succeeding fiscal years is as follows:


(In thousands)
2020	$	70,667
2021	94,121
2022	93,915
2023	93,692
2024	93,345
Thereafter	482,166
	$	927,906

The Company’s acquired intangible assets are being amortized on a straight-line basis over the estimated useful life. The amortization expense recorded from these intangible assets is reported in amortization of acquired intangible assets on the condensed consolidated statements of operations.

Goodwill

In March 2020, the Company recognized goodwill of $29.7 million from the acquisition of Paradigm Diagnostics, Inc. (“Paradigm”) and Viomics, Inc. (“Viomics”). Refer to the Company’s 2019 10-K for further discussion on goodwill recorded.

The Company evaluates goodwill for possible impairment in accordance with ASC 350 on an annual basis during the fourth quarter, or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Qualitative factors considered in this assessment include industry and market conditions, overall financial performance, and other relevant events and factors affecting the Company's business. Based on the qualitative assessment, if it is determined that the fair value of goodwill is more likely than not to be less than its carrying amount, the fair value of a reporting unit will be calculated and compared with its carrying amount and an impairment charge will be recognized for the amount that the carrying value exceeds the fair value. Due to the impact of COVID-19 on the Company’s operations, the Company performed a qualitative assessment of goodwill to determine if an event indicating impairment was present. No such indicators were identified as of March 31, 2020. There were no impairment losses for the periods ended March 31, 2020 and December 31, 2019. During the three months ended March 31, 2020, the Company recognized a measurement period adjustment to goodwill of $4.3 million related to an increase in Genomic Health’s pre-acquisition deferred tax liability due to finalization of certain income-tax related items.

The change in the carrying amount of goodwill for the periods ended March 31, 2020 and December 31, 2019 is as follows:


(In thousands)
Balance, January 1, 2019	$	17,279
Genomic Health acquisition	1,185,918
Balance, December 31, 2019	1,203,197
Paradigm & Viomics acquisition	29,695
Genomic Health acquisition adjustment	4,269
Balance, March 31, 2020	$	1,237,161