XML 25 R16.htm IDEA: XBRL DOCUMENT

Goodwill and Intangible Assets

3 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

6. Goodwill and Intangible Assets

Goodwill represents the excess of net book value over the estimated fair value of net tangible and identifiable intangible assets of a reporting unit. Goodwill is tested for impairment annually or more often if impairment indicators are present at the reporting unit level. The Company elected April 1^st as its annual goodwill impairment assessment date. If the existence of events or circumstances indicates that it is more likely than not that fair values of the reporting units are below their carrying values, the Company performs additional impairment tests during interim periods to evaluate goodwill for impairment. No triggering events indicating goodwill impairment occurred during the three months ended December 31, 2022. Please refer to Note 8, "Goodwill and Intangible Assets" to the Company's consolidated financial statements included in the 2022 Annual Report on Form 10-K for further information on the goodwill impairment testing performed during fiscal year 2022.

In accordance with ASC 350, Intangibles-Goodwill and Other, the Company initially assesses qualitative factors to determine whether the existence of events or circumstances indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the Company determines, based on this assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying value, it performs a quantitative goodwill impairment test by comparing the reporting unit’s fair value with its carrying value. An impairment loss is recognized for the amount by which the reporting unit’s carrying value exceeds its fair value, up to the total amount of goodwill allocated to the reporting unit. No impairment loss is recognized if the fair value of the reporting exceeds its carrying value.

The changes in the Company’s goodwill by reportable segment for the three months ended December 31, 2022 are as follows (in thousands):



	Life Sciences		Life Sciences
	Products		Services		Total
Balance, at September 30, 2022	$	154,612	$	359,011	$	513,623
Acquisitions		219,085		—		219,085
Currency translation adjustments		28,420		24		28,445
Balance, at December 31, 2022	$	402,117	$	359,035	$	761,153

During the three months ended December 31, 2022, the Company recorded goodwill related to the B Medical acquisition of $219.1 million and an increase in goodwill of $28.4 million related to foreign currency translation adjustments.

The components of the Company’s identifiable intangible assets as of December 31, 2022 and September 30, 2022 are as follows (in thousands):


	December 31, 2022						September 30, 2022
			Accumulated		Net Book				Accumulated		Net Book
	Cost		Amortization		Value		Cost		Amortization		Value
Patents	$	1,225	$	1,123	$	102	$	1,225	$	1,106	$	119
Completed technology		212,205		42,718		169,487		99,525		37,991		61,534
Trademarks and trade names		6,373		416		5,957		400		41		359
Non-competition agreements		681		471		210		681		439		242
Customer relationships		291,201		140,340		150,861		246,949		130,802		116,147
Other intangibles		854		365		489		202		202		—
	$	512,539	$	185,433	$	327,106	$	348,982	$	170,581	$	178,401

During the three months ended December 31, 2022, the Company recorded intangible assets related to B Medical acquisition of $143 million.

Amortization expense for intangible assets was $11.5 million and $8.0 million, respectively, for the three months ended December 31, 2022 and 2021.

Estimated future amortization expense for the intangible assets for the remainder of fiscal year 2023, the subsequent four fiscal years and thereafter is as follows (in thousands):


2023	$	35,512
2024		49,107
2025		47,749
2026		44,474
Thereafter		150,264
Total	$	327,106