Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Note D — Goodwill and Intangible Assets

The Company has recorded Goodwill of $146.2 million as of June 30, 2016. The changes in the carrying amount of goodwill for the six month period ended June 30, 2016 and for the year ended December 31, 2015 are as follows (in thousands):

	June 30,			December 31,
	2016			2015
Balance as of January 1	$	146,421		$	2,929
Goodwill acquired during the period		-			143,492
Adjustment to preliminary value of goodwill (Note C)		(242	)		-
Balance at end of period	$	146,179		$	146,421

Intangible assets as of June 30, 2016 and December 31, 2015 consisted of the following (in thousands):

		June 30, 2016
	Amortization Period	Cost		Accumulated Amortization		Net
Trade Name	24 months	$	3,000	$	758	$	2,242
Customer Relationships	156 months		82,930		3,022		79,908
Support Vector Machine (SVM) technology	108 months		500		241		259
Laboratory developed test (LDT) technology	164 months		1,482		470		1,012
Flow Cytometry and Cytogenetics technology	202 months		1,000		257		743
Total		$	88,912	$	4,748	$	84,164

		December 31, 2015
	Amortization Period	Cost		Accumulated Amortization		Net
Trade Name	24 months	$	3,000	$	8	$	2,992
Customer Relationships	156 months		82,930		247		82,683
Support Vector Machine (SVM) technology	108 months		500		213		287
Laboratory developed test (LDT) technology	164 months		1,482		416		1,066
Flow Cytometry and Cytogenetics technology	202 months		1,000		228		772
Total		$	88,912	$	1,112	$	87,800

We recorded approximately $1.6 million and $97,000 in straight-line amortization expense of intangible assets for the three months ended June 30, 2016 and 2015, respectively. We recorded approximately $3.6 million and $190,000 in straight-line amortization expense of intangibles for the six months ended June 30, 2016 and 2015, respectively. The Company recorded amortization expense from customer relationships and trade names as a general and administrative expense. We will continue to record the amortization of the Support Vector Machine (SVM) technology, the LDT technology and the Flow Cytometry and Cytogenetics technology intangible assets as a research and development expense until such time that we have products, services or cost savings directly attributable to these intangible assets that would require recordation in cost of goods sold.

The estimated amortization expense related to amortizable intangible assets for each of the five succeeding fiscal years and thereafter as of June 30, 2016 is as follows (in thousands):

Year Ending December 31,
Remainder of 2016	$	3,636
2017		7,264
2018		5,771
2019		5,771
2020		5,771
2021		5,726
Thereafter		50,225
Total	$	84,164

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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