Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The Company’s goodwill of $152.8 million and $224.3 million as of December 31, 2021 and 2020 respectively, represents the excess of purchase consideration over the fair value of assets acquired and liabilities assumed. As of December 31, 2021, the Company had three reporting units, two of which are contained in the Nucleic Acid Production segment. As of December 31, 2020, the Company had four reporting units, two of which were contained in the Nucleic Acid Production segment. The Company performed a qualitative goodwill impairment analysis on each of its three reporting units during the fourth quarter of 2021 and concluded that it was more likely than not that the fair value of goodwill exceeded its carrying value and no further testing was required. The qualitative impairment test was elected for these three reporting units because of the growth in revenue and cashflows in excess of our initial projections. The Company has not recognized any goodwill impairment charges in any of the periods presented.

The following table summarizes the activity in the Company’s goodwill by segment for the periods presented (in thousands):

	Nucleic Acid Production		Biologics Safety Testing		Protein Detection		Total
Balance as of December 31, 2020	$	32,838	$	119,928	$	71,509	$	224,275
Divestiture	—		—		(71,509)		(71,509)
Balance as of December 31, 2021	$	32,838	$	119,928	$	—	$	152,766

Intangible assets are being amortized on a straight-line basis, which reflects the expected pattern in which the economic benefits of the intangible assets are being obtained, over an estimated useful life ranging from 5 to 14 years.

The following are components of finite-lived intangible assets and accumulated amortization as of the periods presented:

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Estimated Useful Life	Weighted Average Remaining Amortization Period
			(in thousands)				(in years)	(in years)
Trade Names	$	7,120	$	5,012	$	2,108	5 - 10	2.9
Patents and Developed Technology	167,648		63,465		104,183		5 - 14	8.5
Customer Relationships	19,953		8,673		11,280		10 - 12	6.4
Total	$	194,721	$	77,150	$	117,571		8.1

	December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Estimated Useful Life	Weighted Average Remaining Amortization Period
			(in thousands)				(in years)	(in years)
Trade Names	$	11,490	$	5,384	$	6,106	5 - 15	6.3
Patents and Developed Technology	169,404		52,809		116,595		5 - 14	9.5
Customer Relationships	83,323		28,368		54,955		10 - 14	8.8
Total	$	264,217	$	86,561	$	177,656		9.1

The Company recognized $12.4 million, $12.7 million and $12.2 million of amortization expense from intangible assets directly linked with revenue generating activities within cost of revenue in the consolidated statement of operations for the years ended December 31, 2021, 2020, and 2019, respectively. Amortization expense for intangible assets that are not directly related to sales generating activities of $5.9 million, $7.6 million and $8.0 million was recorded as selling, general and administrative expenses for each of the years ended December 31, 2021, 2020, and 2019, respectively.

In September 2021, the Company completed its divestiture of the Protein Detection segment (see Note 2). This resulted in the derecognition of $41.7 million in net intangible assets associated with the divested segment.

As of December 31, 2021, the estimated future amortization expense for finite-lived intangible assets were as follows (in thousands):

2022	$	14,600
2023	14,417
2024	14,417
2025	14,417
2026	14,191
Thereafter	45,529
Total estimated amortization expense	$	117,571