Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2016, are as follows:



	2017			2016
Beginning balance	$	157,175		$	165,169
Acquisitions	4,850			—
Impairment	(13,823		)	—
Foreign currency translation adjustments	5,087			(7,994		)
Ending balance	$	153,289		$	157,175

For the year ended December 31, 2017, the Company recorded a $13,823 goodwill impairment charge, which primarily relates to AquaBounty. During the Company's annual goodwill impairment test, the Company determined, based on the price per share received by AquaBounty in its recent underwritten public offering (Note 22), it was more-likely-than-not that the fair value of the AquaBounty reporting unit was less than its carrying amount. As a result, the Company compared the carrying amount of the AquaBounty reporting unit to the fair value and determined the carrying amount exceeded the fair value resulting in a $13,001 goodwill impairment charge for the excess carrying value. The Company did not recognize any goodwill impairment charges during the years ended December 31, 2016 or 2015, and there were no accumulated impairment charges as of December 31, 2016.

Intangible assets consist of the following as of December 31, 2017:



	Weighted Average Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Patents, developed technologies and know-how	15.9	$	263,615	$	(44,954	)	$	218,661
Customer relationships	6.5	10,700		(6,383		)	4,317
Trademarks	9.3	6,800		(2,567		)	4,233
In-process research and development		5,666		—			5,666
Total		$	286,781	$	(53,904	)	$	232,877

Intangible assets consist of the following as of December 31, 2016:



	Gross Carrying Amount		Accumulated Amortization			Net
Patents, developed technologies and know-how	$	236,401	$	(29,748	)	$	206,653
Customer relationships	10,700		(4,672		)	6,028
Trademarks	6,800		(1,792		)	5,008
Covenant not to compete	370		(339		)	31
In-process research and development	7,895		—			7,895
Total	$	262,166	$	(36,551	)	$	225,615

The balance of in-process research and development includes certain in-process research and development technology acquired in the Company's acquisition of Oxitec in September 2015, and amortization will begin once certain regulatory approvals have been obtained for the in-process programs. In 2017, the Company decided to forgo further development for certain of its in-process research and development assets and, as a result, recorded an impairment charge of $2,950.

Amortization expense was $19,194, $15,185 and $9,871 for the years ended December 31, 2017, 2016 and 2015, respectively. Estimated aggregate amortization expense for definite lived intangible assets is expected to be as follows:



2018	$	19,258
2019	18,935
2020	18,833
2021	18,645
2022	17,646
Thereafter	133,894
Total	$	227,211

- 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.

+ References + Details