Goodwill and Intangible Assets |
Goodwill and Intangible Assets During the year ended December 31, 2021, we completed an immaterial business combination which increased goodwill and existing technology intangible assets.
Goodwill
The change in the carrying value of goodwill for the year ended December 31, 2021 and 2020, categorized by reportable segments, is as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | Clear Aligner | | Systems and Services | | Total | Balance as of December 31, 2019 | | $ | 63,924 | | | $ | — | | | $ | 63,924 | | Additions from acquisition | | 43,500 | | | 296,681 | | | 340,181 | | Foreign currency translation adjustments | | 5,267 | | | 35,445 | | | 40,712 | | Balance as of December 31, 2020 | | 112,691 | | | 332,126 | | | 444,817 | | Additions from acquisition | | 3,646 | | | — | | | 3,646 | | Foreign currency translation adjustments | | (4,129) | | | (25,787) | | | (29,916) | | Balance as of December 31, 2021 | | $ | 112,208 | | | $ | 306,339 | | | $ | 418,547 | |
We completed our annual goodwill impairment assessments in 2021 and 2020 and determined there were no impairments.
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, 2021 | | Accumulated Amortization | | Accumulated Impairment Loss | | Net Carrying Value as of December 31, 2021 | Existing technology | | 10 | | $ | 104,531 | | | $ | (22,495) | | | $ | (4,328) | | | $ | 77,708 | | Customer relationships | | 11 | | 55,000 | | | (25,891) | | | (10,751) | | | 18,358 | | Trademarks and tradenames | | 10 | | 17,200 | | | (4,547) | | | (4,179) | | | 8,474 | | Patents and other | | 8 | | 6,511 | | | (4,495) | | | — | | | 2,016 | | | | | | $ | 183,242 | | | $ | (57,428) | | | $ | (19,258) | | | 106,556 | | Foreign currency translation | | | | | | | | | | 3,153 | | Total intangible assets | | | | | | | | | | $ | 109,709 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | | | | | | | | | | $ | 130,072 | |
There were no triggering events in 2021 or 2020 that would cause impairments of our intangible long-lived assets. The total estimated annual future amortization expense for these acquired intangible assets as of December 31, 2021 is as follows (in thousands): | | | | | | | | | Fiscal Year | | Amortization | 2022 | | $ | 15,692 | | 2023 | | 14,997 | | 2024 | | 13,831 | | 2025 | | 13,455 | | 2026 | | 12,849 | | Thereafter | | 35,732 | | Total | | $ | 106,556 | |
Amortization expense was $16.6 million, $13.4 million and $5.9 million for the year ended December 31, 2021, 2020 and 2019, respectively.
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