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Goodwill And Other Intangible Assets
3 Months Ended
Mar. 31, 2022
Goodwill And Other Intangible Assets [Abstract]  
Goodwill And Other Intangible Assets 5. Goodwill and Other Intangible Assets 

 

Indefinite Lived Intangible Assets 

As of March 31, 2022 and December 31, 2021 the carrying values of our indefinite lived intangible assets were as follows (in thousands): 

March 31,

December 31,

2022

2021

Goodwill

$

247,829

$

250,000

In-process R&D

2,164

2,208

Procurement contracts and agreements

2,013

2,013

Trademarks

196

66

We monitor the phases of development of our acquired in-process research and development projects, including the risks associated with further development and the amount and timing of benefits expected to be derived from the completed projects. Incremental costs associated with development are charged to expense as incurred. Capitalized costs are amortized over the estimated useful life of the developed asset once completed. Our in-process research and development projects are reviewed for impairment annually, or more frequently, if events or changes in circumstances indicate that the asset might be impaired. We did not record any impairment of indefinite lived intangible assets during the three months ended March 31, 2022. In-process research and development, procurement contracts and agreements, and trademarks are included in Other intangibles, net on the Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021.

Based on our experience with similar agreements, we believe that our acquired procurement contracts and agreements have indefinite useful lives, as we expect to continue to renew these contracts for the foreseeable future. We believe that our trademarks have indefinite useful lives as we currently anticipate that our trademarks will contribute to our cash flows indefinitely.

We evaluate our goodwill and non-amortizing intangible assets for impairment on an annual basis during the fourth quarter of the year, and, if necessary, during interim periods if factors indicate that an impairment review is warranted. As of March 31, 2022 we concluded that our assessment of current factors did not indicate that goodwill or non-amortizing intangible assets are more likely than not to be impaired. We will continue to evaluate the recoverability of these non-amortizing intangible assets in future periods as necessary.

As of March 31, 2022 and December 31, 2021 our entire goodwill balance was related to our Medical devices segment.

Medical Devices Segment

Balance as of December 31, 2021

$

250,000

Foreign currency translation

(2,171)

Balance as of March 31, 2022

$

247,829

Definite Lived Intangible Assets 

The definite lived intangible assets balance includes balances related to acquired technology, customer relationships, distribution and manufacturing rights and know-how, patents, and other definite lived intangible assets. As of March 31, 2022 and December 31, 2021 the gross carrying values, accumulated amortization, and approximate amortization period of our definite lived intangible assets were as follows (in thousands): 

Weighted Average

Gross Carrying

Accumulated

Net Carrying

Useful Life

March 31, 2022

Value

Amortization

Value

(Years)

Acquired technology

$

211,589

$

49,131

$

162,458

17.7

Other intangibles:

Customer lists and relationships

31,108

9,987

21,121

20.5

Distribution and manufacturing rights and know-how

9,652

4,675

4,977

5.0

Patents

4,127

3,153

974

17.0

Other

4,190

1,938

2,252

4.4

Total other intangibles

$

49,077

$

19,753

$

29,324

10.6

Weighted Average

Gross Carrying

Accumulated

Net Carrying

Useful Life

December 31, 2021

Value

Amortization

Value

(Years)

Acquired technology

$

213,626

$

46,632

$

166,994

17.7

Other intangibles:

Customer lists and relationships

31,148

9,618

21,530

20.5

Distribution and manufacturing rights and know-how

9,847

4,308

5,539

5.0

Patents

4,083

3,144

939

17.0

Other

3,969

1,762

2,207

4.4

Total other intangibles

$

49,047

$

18,832

$

30,215

10.6

Amortization Expense 

The following is a summary of amortization expense as recorded in General, administrative, and marketing expenses on our Condensed Consolidated Statement of Operations and Comprehensive Loss (in thousands): 

 

Three Months Ended

March 31,

2022

2021

Amortization expense

$

4,084

$

4,260

As of March 31, 2022 scheduled amortization of intangible assets for the next five years is as follows (in thousands): 

 

Remainder

of 2022

2023

2024

2025

2026

2027

Total

Amortization expense

$

11,625

15,131

14,754

12,785

12,559

12,496

$

79,350