Goodwill and Intangible Assets

9 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

9. Goodwill and Intangible Assets

In the second quarter of fiscal 2023, as part of the Company’s routine long-term planning process, the Company assessed several events and circumstances that could affect the significant inputs used to determine the fair value of its reporting units, including updates to forecasted margins and cash flows, and the overall change in the economic climate since its last impairment assessment. The Company considered impairment indicators and determined it appropriate to perform a quantitative assessment of its reporting units as of March 31, 2023. The estimated fair value of the Life Sciences Services and Life Sciences Products reporting units exceeded their respective carrying values by approximately 24% and 17%, respectively, as of March 31, 2023. Therefore, the Company concluded there was no impairment to goodwill as of March 31 or April 1, 2023. The Company performed a qualitative goodwill impairment assessment during the third quarter of fiscal 2023 and determined that there were no events or circumstances during the period to indicate an additional quantitative goodwill impairment assessment was required for the third quarter of fiscal 2023.

In the event the financial performance of the reporting units does not meet management’s expectations in the future, there is a change to the Company’s reportable segments, the Company experiences a prolonged macroeconomic or market downturn, declines in the Company’s stock price, or there are other negative revisions to key assumptions used in

the DCF Method, the Company may be required to perform additional impairment analyses and could be required to recognize an impairment charge.

Refer to the Notes to our audited consolidated financial statements included in the section titled “Financial Statements and Supplementary Data” in Part II, Item 8 of our 2022 Annual Report on Form 10 K for further information on the goodwill impairment testing performed during fiscal year 2022.

The changes in the Company’s goodwill by reportable segment for the nine months ended June 30, 2023 are as follows (in thousands):

	Life Sciences		Life Sciences
	Products		Services		Total
Balance - September 30, 2022	$	154,612	$	359,011	$	513,623
Acquisitions		229,260		—		229,260
Currency translation adjustments		50,655		85		50,740
Balance - June 30, 2023	$	434,527	$	359,096	$	793,623

During the nine months ended June 30, 2023, the Company recorded goodwill related to the B Medical and Ziath acquisitions of $229.3 million.

The components of the Company’s identifiable intangible assets as of June 30, 2023 and September 30, 2022 are as follows (in thousands):

	June 30, 2023						September 30, 2022
			Accumulated		Net Book				Accumulated		Net Book
	Cost		Amortization		Value		Cost		Amortization		Value
Patents	$	8,996	$	8,928	$	68	$	1,225	$	1,106	$	119
Completed technology		252,424		84,206		168,218		99,525		37,991		61,534
Trademarks and trade names		8,909		3,173		5,736		400		41		359
Non-competition agreements		731		586		145		681		439		242
Customer relationships		321,155		183,943		137,212		246,949		130,802		116,147
Other intangibles		904		228		676		202		202		—
Total	$	593,119	$	281,064	$	312,055	$	348,982	$	170,581	$	178,401

During the nine months ended June 30, 2023, the Company recorded intangible assets related to the B Medical and Ziath acquisitions of $147.5 million.

Amortization expense for intangible assets was $12.2 million and $7.6 million, respectively, for the three months ended June 30, 2023 and 2022. Amortization expense for intangible assets was $36.1 million and $23.4 million, respectively, for the nine months ended June 30, 2023 and 2022.

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

2023	$	11,366
2024		50,664
2025		49,292
2026		45,908
2027		37,706
2028		31,219
Thereafter		85,900
Total	$	312,055