Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Indefinite Lived Intangible Assets

As of September 30, 2023 and December 31, 2022 the carrying values of our indefinite lived intangible assets were as follows (in thousands):


	September 30, 2023		December 31, 2022
Goodwill	$	242,936	$	243,631
In-process R&D	2,066		2,080
Procurement contracts and agreements	2,013		2,013

We monitor the phases of development of our acquired in-process research and development projects, including the risks associated with further development and the amount and timing of benefits expected to be derived from the completed projects. Incremental costs associated with development are charged to expense as incurred. Capitalized costs are amortized over the estimated useful life of the developed asset once completed. Our in-process research and development projects are reviewed for impairment annually, or more frequently, if events or changes in circumstances indicate that the asset might be impaired. We did not record any impairment of indefinite lived intangible assets during the three and nine months ended September 30, 2023. In-process research and development, procurement contracts and agreements are included in Other intangibles, net on the Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022.

Based on our experience with similar agreements, we believe that our acquired procurement contracts and agreements have indefinite useful lives, as we expect to continue to renew these contracts for the foreseeable future.

We evaluate our goodwill and non-amortizing intangible assets for impairment on an annual basis during the fourth quarter of the year, and, if necessary, during interim periods if factors indicate that an impairment review is warranted. As of September 30, 2023 we concluded that our assessment of current factors did not indicate that goodwill or non-amortizing intangible assets are more likely than not to be impaired. We will continue to evaluate the recoverability of these non-amortizing intangible assets in future periods as necessary.

As of September 30, 2023 and December 31, 2022 the carrying value of goodwill, all of which is related to our Medical Devices segment, was as follows (in thousands):


	Medical Devices Segment
Balance as of December 31, 2022	$	243,631
Foreign currency translation	(695)
Balance as of September 30, 2023	$	242,936

Definite Lived Intangible Assets

The definite lived intangible assets balance includes balances related to acquired technology, customer relationships, distribution and manufacturing rights and know-how, patents, and other definite lived intangible assets. As of September 30, 2023 and December 31, 2022 the gross carrying values, accumulated amortization, and approximate amortization period of our definite lived intangible assets were as follows (in thousands, except weighted average useful life):


September 30, 2023	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life (Years)
Acquired technology	$	197,768	$	55,093	$	142,675	18.2
Other intangibles:
Customer lists and relationships	28,648		9,973		18,675		21.6
Distribution and manufacturing rights and know-how	9,211		7,052		2,159		5.0
Patents	4,322		3,210		1,112		17.0
Other	6,684		3,311		3,373		5.0
Total other intangibles	$	48,865	$	23,546	$	25,319	10.3


December 31, 2022	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life (Years)
Acquired technology	$	198,420	$	47,157	$	151,263	18.2
Other intangibles:
Customer lists and relationships	31,030		11,100		19,930		20.5
Distribution and manufacturing rights and know-how	9,274		5,796		3,478		5.0
Patents	4,246		3,180		1,066		17.0
Other	5,360		2,543		2,817		4.4
Total other intangibles	$	49,910	$	22,619	$	27,291	10.3

Amortization Expense

The following is a summary of amortization expense as recorded in General, administrative, and marketing expenses on our Condensed Consolidated Statement of Operations and Comprehensive Loss (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Amortization expense	$	3,766	$	3,686	$	11,453	$	11,675

As of September 30, 2023 scheduled amortization of intangible assets for the next five years is as follows (in thousands):


	Remainder of 2023		2024		2025		2026		2027		2028		Total
Amortization expense	$	3,720	$	14,700	$	12,848	$	12,617	$	12,511	$	12,313	$	68,709