XML 25 R12.htm IDEA: XBRL DOCUMENT v3.20.1
Goodwill and Intangible Assets
 3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets
6.
Goodwill and Intangible Assets
 
 
 
 
 
 
 
Goodwill
Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350. The following table represents the change in the carrying value of goodwill for the three months ended March 31, 2020 (amounts in thousands):
         
Balance as of December 31, 2019
  $
468,413
 
Goodwill adjustment related to C Technologies, Inc.
   
293
  
Cumulative translation adjustment
   
(324
 )
         
Balance as of March 31, 2020
  $
468,382
 
         
 
 
 
 
 
 
 
 
 
 
 
During each of the fourth quarters of 2019, 2018 and 2017, we completed our annual impairment assessments and concluded that goodwill was not impaired in any of those years. The Company has not identified any “triggering” events which indicate an impairment of goodwill in the three months ended March 31, 2020.
Intangible Assets
Intangible assets with a definitive life are amortized over their useful lives using the straight-line method, and the amortization expense is recorded within cost of product revenue and selling, general and administrative expense
s
in the Company’s statements of comprehensive income. Intangible assets and their related useful lives are reviewed at least annually to determine if any
adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. More frequent impairment assessments are conducted if certain conditions exist, including a change in the competitive landscape, any internal decisions to pursue new or different technology strategies, a loss of a significant customer, or a significant change in the marketplace, including changes in the prices paid for our products or changes in the size of the market for our products. An impairment results if the carrying value of the asset exceeds the estimated fair value of the asset. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company continues to believe that its intangible assets are recoverable at March 31, 2020.
Indefinite-lived assets are reviewed for impairment at least annually. There has been no impairment of our intangible assets for the periods presented.
Intangible assets, net consisted of the following at March 31, 2020:
                                 
 
March 31, 2020
 
 
Gross
Carrying
Value
 
  
Accumulated
Amortization
 
  
Net
Carrying
Value
 
  
Weighted
Average
Useful
 
Life
(in years)
 
 
(Amounts in thousands)
   
 
Finite-lived intangible assets:
 
 
 
  
 
 
  
 
 
  
 
 
Technology—developed
  $
82,095
    $
(10,725
 )   $
71,370
     
19
 
Patents
   
240
     
(240
 )    
—  
      
8
 
Customer relationships
   
160,425
     
(27,970
 )    
132,455
     
15
 
Trademarks
   
3,752
     
(380
 )    
3,372
     
20
 
Other intangibles
   
1,696
     
(1,067
 )    
629
     
3
 
                                 
Total finite-lived intangible assets
   
248,208
     
(40,382
 )    
207,826
     
16
 
Indefinite-lived intangible asset:
 
 
 
  
 
 
  
 
 
  
 
 
Trademarks
   
700
     
—  
      
700
     
—  
  
                                 
Total intangible assets
  $
248,908
    $
(40,382
 )   $
208,526
     
 
                                 
 
 
 
 
 
Intangible assets consisted of the following at December 31, 2019:
                                 
 
December 31, 2019
 
 
Gross
Carrying
Value
 
  
Accumulated
Amortization
 
  
Net
Carrying
Value
 
  
Weighted
Average
Useful Life
(in years)
 
 
(Amounts in thousands)
   
 
Finite-lived intangible assets:
 
 
 
  
 
 
  
 
 
  
 
 
Technology—developed
  $
82,169
    $
(9,669
 )   $
72,500
     
19
 
Patents
   
240
     
(240
 )    
—  
      
8
 
Customer relationships
   
160,825
     
(25,642
 )    
135,183
     
15
 
Trademarks
   
3,752
     
(333
 )    
3,419
     
20
 
Other intangibles
   
1,697
     
(947
 )    
750
     
3
 
                                 
Total finite-lived intangible assets
   
248,683
     
(36,831
 )    
211,852
     
16
 
Indefinite-lived intangible asset:
 
 
 
  
 
 
  
 
 
  
 
 
Trademarks
   
700
     
—  
      
700
     
—  
  
                                 
Total intangible assets
  $
249,383
    $
(36,831
 )   $
212,552
     
 
                                 
 
 
 
 
The increase in intangible assets during 2019 is related to the acquisition of C Technologies on May 31, 2019. See Note 3,
“Acquisition of C Technologies, Inc.”
for more information.
 
 
 
Amortization expense for finite-lived intangible assets was $
3.9
 million and $
2.6
 million for the three months ended March 31, 2020 and 2019, respectively.
As of March 31, 2020, the Company expects to record the following amortization expense (amounts in thousands):
 
         
 
Estimated
 
 
Amortization
 
For the Three Months Ended March 31,
 
Expense
 
2020 (remaining nine months)
  $
11,348
 
2021
   
14,728
 
2022
   
14,726
 
2023
   
14,630
 
2024
   
14,188
 
2025 and thereafter
   
138,206
 
         
Total
  $
207,826