Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The change in the carrying value of goodwill for the year ended December 31, 2020 and 2019, categorized by reportable segments, is as follows (in thousands):


	Clear Aligner		Systems and Services		Total
Balance as of December 31, 2018	$	64,029	$	—	$	64,029
Adjustments 2	(105)		—		(105)
Balance as of December 31, 2019	63,924		—		63,924
Additions from exocad acquisition 1	43,500		296,681		340,181
Adjustments 2	5,267		35,445		40,712
Balance as of December 31, 2020	$	112,691	$	332,126	$	444,817

1 Includes goodwill adjustments within the measurement period (up to one year from acquisition date). Refer to Note 5 "Business Combination" of the Notes to Consolidated Financial Statements for additional details.

2 Adjustments related to foreign currency translation within the measurement period

We completed our annual goodwill impairment assessments in 2020 and 2019 and determined there were no impairments.

Intangible Long-Lived Assets

We amortize our intangible assets over their estimated useful lives. We evaluate long-lived assets, which includes property, plant and equipment and intangible assets, for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The carrying value is not recoverable if it exceeds the undiscounted cash flows resulting from the use of the asset and its eventual disposition. Our estimates of future cash flows attributable to our long-lived assets require significant judgment based on our historical and anticipated results and are subject to many factors. Factors we consider important which could trigger an impairment review include significant negative industry or economic trends, significant loss of customers and changes in the competitive environment.

There were no triggering events in 2020 or 2019 that would cause impairments of our intangible long-lived assets.

Acquired intangible long-lived assets were as follows, excluding intangibles that were fully amortized (in thousands):


	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of December 31, 2020		Accumulated Amortization		Accumulated Impairment Loss		Net Carrying Value as of December 31, 2020
Existing technology	10	$	99,400	$	(12,719)	$	(4,328)	$	82,353
Customer relationships	11	55,000		(21,879)		(10,751)		22,370
Trademarks and tradenames	10	16,600		(2,934)		(4,179)		9,487
Patents and other	8	6,610		(3,785)		—		2,825
		$	177,610	$	(41,317)	$	(19,258)	117,035
Foreign currency translation								13,037
Total intangible assets 1								$	130,072

1 Refer to Note 5 "Business Combination" of the Notes to Consolidated Financial Statements for additional details on intangible assets from our exocad acquisition


	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of December 31, 2019		Accumulated Amortization 2		Accumulated Impairment Loss		Net Carrying Value as of December 31, 2019
Trademarks	15	$	6,800	$	(1,745)	$	(4,179)	$	876
Existing technology	13	12,400		(5,631)		(4,328)		2,441
Customer relationships	11	33,500		(18,405)		(10,751)		4,344
Reacquired rights	3	7,500		(7,059)		—		441
Patents and other	8	6,770		(3,104)		—		3,666
Total intangible assets		$	66,970	$	(35,944)	$	(19,258)	$	11,768

2 Includes foreign currency translation which is immaterial

The total estimated annual future amortization expense for these acquired intangible assets as of December 31, 2020 is as follows (in thousands):


Fiscal Year	Amortization
2021	$	15,622
2022	14,366
2023	13,745
2024	12,805
2025	12,428
Thereafter	48,069
Total	$	117,035

Amortization expense was $13.4 million, $5.9 million and $6.0 million for the year ended December 31, 2020, 2019 and 2018, respectively.