6.	Intangible Assets

Goodwill is subject to an annual impairment review (or more frequently if impairment indicators arise) at the reporting unit level, which we perform annually as of June 30, the end of our third fiscal quarter. During the quarter ended June 30, 2017, the events described below occurred in connection with the Magellan reporting unit, indicating that impairment of the goodwill recorded as part of the acquisition of Magellan had occurred.

On May 17, 2017, the FDA issued a field safety notice advising customers to discontinue use of Magellan’s lead testing systems with venous blood samples. This was followed by product recall notices on May 25^th and June 5^th. Magellan’s lead testing systems are capable of processing both capillary and venous blood samples. Magellan’s LeadCare Plus and LeadCare Ultra systems, which account for approximately 10% of Magellan’s annual revenues, are used predominantly with venous blood samples. Magellan’s LeadCare and LeadCare II systems are predominantly used with capillary blood samples. Since issuance of the field safety and recall notices, the FDA has completed a quality system inspection of Magellan and has issued its Form FDA 483 to Magellan. As a result of one of the observations contained within the Form FDA 483 involving a Medical Device Report, we expect that the FDA will issue a Warning Letter requiring periodic reporting on our remediation progress. Upon evaluation of the Form FDA 483 and potential Warning Letter, we believe we may experience further delays in reinstating venous blood sample testing on our LeadCare products, as well as in obtaining 510(k) clearance for new Magellan products. Additionally, we may also experience delays in obtaining export certifications for Magellan products during the remediation period.

In light of these factors and their impacts, it was determined that a potential impairment of goodwill recorded in connection with the acquisition of Magellan had occurred (i.e., a “triggering event”). With the assistance of an independent valuation firm, Magellan’s fair value was calculated via both market (comparable company) and income (discounted cash flows) approaches. Based upon these approaches, it was determined that the carrying value of the Magellan reporting unit did, in fact, exceed its fair value. As a result, an impairment charge of $6,628, on both a pre-tax and after-tax basis, has been recorded during the third quarter and is reflected as a separate operating expense line item within the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2017.

A summary of our acquired intangible assets subject to amortization, as of June 30, 2017 and September 30, 2016, is as follows:


	June 30, 2017				September 30, 2016
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Manufacturing technologies, core products and cell lines	$	22,294	$	12,466	$	21,921	$	11,540
Trade names, licenses and patents		8,643		4,139		9,037		3,947
Customer lists, customer relationships and supply agreements		24,457		11,467		24,385		10,511
Non-compete agreements		720		450		680		170

	$	56,114	$	28,522	$	56,023	$	26,168

The actual aggregate amortization expense for these intangible assets was $939 and $1,072 for the three months ended June 30, 2017 and 2016, respectively, and $2,843 and $1,834 for the nine months ended June 30, 2017 and 2016, respectively. The estimated aggregate amortization expense for these intangible assets for each of the fiscal years through fiscal 2022 is as follows: remainder of fiscal 2017 – $937, fiscal 2018 – $3,547, fiscal 2019 – $3,326, fiscal 2020 – $3,164, fiscal 2021 – $2,560, and fiscal 2022 – $2,182.