Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

As a result of the acquisition of Trapelo in April 2021, the Company recorded $44.7 million in goodwill, all of which was recorded in the Clinical Services segment. As a result of the acquisition of Inivata in June 2021, the Company recorded $270.1 million in goodwill, of which $237.3 million and $32.8 million is assigned to the Clinical Services and Pharma Services segments, respectively. For further information regarding the Trapelo and Inivata acquisitions, please refer to Note 3. Acquisitions.

The following table summarizes the changes in the carrying amount of goodwill by segment for the nine months ended September 30, 2021 (in thousands):

	Clinical Services		Pharma Services		Total
Balance as of December 31, 2020	$	179,534	$	31,549	$	211,083
Trapelo acquisition	44,664		—		44,664
Inivata acquisition	237,251		32,804		270,055
Balance as of September 30, 2021	$	461,449	$	64,353	$	525,802

Intangible assets consisted of the following (in thousands):

		September 30, 2021
	Amortization Period	Cost		Accumulated Amortization		Net
Customer Relationships	7 - 15 years	$	143,101	$	43,286	$	99,815
Developed Technology	10 - 15 years	310,226		6,469		303,757
Marketing Assets	4 years	549		66		483
Trademarks	15 years	31,473		601		30,872
Trade Name	5 years	2,575		147		2,428
Trademark - Indefinite lived	—	13,447		—		13,447
Total		$	501,371	$	50,569	$	450,802

 

		December 31, 2020
	Amortization Period	Cost		Accumulated Amortization		Net
Customer Relationships	7 - 15 years	$	143,101	$	35,895	$	107,206
Trademark - Indefinite lived	—	13,447		—		13,447
Total		$	156,548	$	35,895	$	120,653

The Company records amortization expense within cost of revenue and general and administrative expense on the Consolidated Statement of Operations. The following table summarizes the amortization expense for the three and nine months ended September 30, 2021 and 2020 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Amortization of intangibles included in cost of revenue	$	4,825	$	—	$	5,554	$	—
Amortization of intangibles included in general and administrative expenses	3,649		2,468		9,129		7,387
Total amortization of intangibles	$	8,474	$	2,468	$	14,683	$	7,387

The estimated amortization expense related to amortizable intangible assets for each of the following periods as of September 30, 2021 is as follows (in thousands):

 

Remainder of 2021	$	8,457
2022	33,899
2023	33,899
2024	33,899
2025	33,798
Thereafter	293,403
Total	$	437,355