Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2012

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Goodwill

Activity related to goodwill consisted of the following (in thousands):

	Nine Months
	Ended		Year Ended
	March 31,		June 30,
	2012		2011
Balance at the beginning of the period	$	54,474	$	4,495
Addition related to acquisition	—		49,979
Adjustments related to prior year acquisition (1)	1,706		—
Balance at the end of the period	$	56,180	$	54,474

(1)  Primarily represents an additional liability incurred as part of the TomoTherapy acquisition.

Intangible Assets

The Company’s intangible assets associated with completed acquisitions at March 31, 2012 and June 30, 2011 are as follows (in thousands):

		March 31, 2012							June 30, 2011
		Gross							Gross
		Carrying		Accumulated			Net		Carrying		Accumulated			Net
	Useful Lives	Amount		Amortization			Amount		Amount		Amortization			Amount
	(in years)
Developed technology	6	$	43,455	$	(7,420	)	$	36,035	$	43,455	$	(2,069	)	$	41,386
Backlog	1.25	10,500		(6,767		)	3,733		10,500		(467		)	10,033
Distributor license	2.5	1,860		(586		)	1,274		1,860		(40		)	1,820
In-process research and development (CPAC)	Indefinite	12,800		—			12,800		12,800		—			12,800
		$	68,615	$	(14,773	)	$	53,842	$	68,615	$	(2,576	)	$	66,039

Amortization expense related to intangible assets was $4.0 million and $0.1 million for the three months ended March 31, 2012 and 2011, respectively and $12.2 million and $0.2 million for the nine months ended March 31, 2012 and 2011, respectively.

The estimated future amortization expense of purchased intangible assets, excluding in-process research and development, as of March 31, 2012 is as follows (in thousands):

Year Ending June 30,	Amount
2012 (remaining three months)	$	4,023
2013	9,306
2014	7,298
2015	6,933
2016	6,933
Thereafter	6,549
	$	41,042