Goodwill and Other Intangible Assets, net

12 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, net

Goodwill and Other Intangible Assets, net

Goodwill

For each of the years ended June 30, 2024 and June 30, 2023, we have not recorded any goodwill impairments. Changes in the carrying amount of goodwill is comprised of the following for the year ended June 30, 2024 (in thousands):

	2024
	Sleep and Respiratory Care		SaaS		Total
Balance at the beginning of the period	$	670,120	$	2,100,179	$	2,770,299
Business acquisitions	92,191		—		92,191
Foreign currency translation adjustments	(4,782)		(15,653)		(20,435)
Balance at the end of the period	$	757,529	$	2,084,526	$	2,842,055

Other Intangible Assets

Other intangibles, net are comprised of the following as of June 30, 2024 and June 30, 2023 (in thousands):

	2024		2023
Developed/core product technology	$	384,679	$	398,740
Accumulated amortization	(280,970)		(265,802)
Developed/core product technology, net	103,709		132,938
Customer relationships	432,470		443,652
Accumulated amortization	(150,486)		(124,220)
Customer relationships, net	281,984		319,432
Other intangibles	252,210		244,373
Accumulated amortization	(151,999)		(144,402)
Other intangibles, net	100,211		99,971
Total other intangibles, net	$	485,904	$	552,341

Intangible assets consist of developed/core product technology, trade names, non-compete agreements, customer relationships, and patents, and we amortize them over the estimated useful life of the assets, generally between two years and fifteen years. There are no expected residual values related to these intangible assets.

During the year ended June 30, 2024, we impaired $18.6 million of developed/core product technology intangible assets, $14.5 million of customer relationship intangible assets, and $0.1 million of other intangibles associated with restructuring activities. These non-cash charges were recorded within restructuring expenses in the consolidated statements of income. Refer to Note 18 – Restructuring Expenses for the facts and circumstances leading to the impairments. We did not record any intangible asset impairments during the years ended June 30, 2023 and 2022.

Amortization expense related to identified intangible assets for the years ended June 30, 2024 and June 30, 2023 was $79.5 million and $72.4 million, respectively. Amortization expense related to patents, included in other intangibles, for the years ended June 30, 2024 and June 30, 2023 was $7.6 million and $7.0 million, respectively. Total estimated annual amortization expense for the years ending June 30, 2025 through June 30, 2029, is shown below (in thousands):

	Fiscal Years Ending June 30
	2025		2026		2027		2028		2029
Estimated amortization expense	$	81,975	$	76,847	$	58,023	$	49,431	$	43,492