Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

8.    Goodwill and Intangible Assets

On April 1, 2023, in accordance with the Company’s policy, the Company performed the annual quantitative goodwill impairment test. As of the annual impairment test date, 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. The Company qualitatively evaluated goodwill for impairment during the remainder 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.

In the event of 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.

The following table sets forth the changes in the carrying amount of goodwill by reportable segment since September 30, 2021 (in thousands):

	Life Sciences		Life Sciences
	Products		Services		Total
Balance - September 30, 2021	$	110,138	$	359,218	$	469,356
Acquisitions		57,854		—		57,854
Currency translation adjustments		(13,380)		(207)		(13,587)
Balance - September 30, 2022	$	154,612	$	359,011	$	513,623
Acquisitions		242,789		—		242,789
Currency translation adjustments		27,903		24		27,927
Balance - September 30, 2023	$	425,304	$	359,035	$	784,339

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

	September 30, 2023						September 30, 2022
			Accumulated		Net Book				Accumulated		Net Book
	Cost		Amortization		Value		Cost		Amortization		Value
Patents	$	1,226	$	1,175	$	51	$	1,225	$	1,106	$	119
Completed technology		215,430		56,021		159,409		99,525		37,991		61,534
Trademarks and trade names		6,630		1,445		5,185		400		41		359
Non-competition agreements		681		568		113		681		439		242
Customer relationships		290,800		161,257		129,543		246,949		130,802		116,147
Other intangibles		869		869		—		202		202		—
Total	$	515,636	$	221,335	$	294,301	$	348,982	$	170,581	$	178,401

For further details regarding the increase in the goodwill and intangibles balances from September 30, 2022 to September 30, 2023, which were primarily a result of the B Medical and Ziath acquisitions, please refer to Note 4, Business Combinations.

Amortization expense for intangible assets was $48.4 million, $32.3 million, and $37.4 million, respectively, for the fiscal years ended September 30, 2023, 2022 and 2021.

Estimated future amortization expense for the intangible assets as of September 30, 2023 is as follows (in thousands):

2024	$	49,750
2025		48,308
2026		44,952
2027		36,877
2028		30,533
Thereafter		83,881
Total	$	294,301