Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2013

(10)	Goodwill and Intangible Assets

Goodwill

At March 31, 2013, the Company had recorded goodwill of $56,850,000 related to the acquisition of Myriad RBM, Inc. on May 31, 2011 (formerly Rules-Based Medicine, Inc.). There were no events or circumstances that indicated that impairment exists: therefore, the Company recorded no impairment of goodwill for the three months and nine months ended March 31, 2013.

Intangible Assets

Intangible assets primarily consist of amortizable assets of purchased licenses and technologies, and customer relationships as well as non-amortizable intangible assets of in-process technologies, research and development and trademarks. Certain of these intangible assets were recorded as part of the Company’s purchase of Rules-Based Medicine, Inc. on May 31, 2011. In December 2012, the Company notified the licensor of the Company’s OnDose product of the Company’s intent to terminate the license agreement, and as a result, recorded an impairment charge of approximately $1,490,000 associated with the purchased license agreement. The fair value was estimated for the license agreement using the undiscounted future cash flows method, under which the Company determined that the fair value was less than the carrying value. The impairment is included in research and development in the condensed consolidated statement of income and is part of the molecular diagnostic segment. The following summarizes the amounts reported as intangible assets:


(In thousands)	Gross Carrying Amount		Accumulated Amortization			Net
March 31, 2013	Gross Carrying Amount		Accumulated Amortization			Net
Purchased licenses and technologies	$	4,500	$	(2,565	)	$	1,935
Customer relationships		4,650		(860	)		3,790

Total amortizable intangible assets		9,150		(3,425	)		5,725

Trademarks		3,000		—			3,000
In-process research and development		4,800		—			4,800

Total non-amortizable intangible assets		7,800		—			7,800

Total intangible assets	$	16,950	$	(3,425	)	$	13,525


(In thousands)	Gross Carrying Amount		Accumulated Amortization			Net
June 30, 2012	Gross Carrying Amount		Accumulated Amortization			Net
Purchased licenses and technologies	$	6,500	$	(2,724	)	$	3,776
Customer relationships		4,650		(504	)		4,146

Total amortizable intangible assets		11,150		(3,228	)		7,922

Trademarks		3,000		—			3,000
In-process research and development		4,800		—			4,800

Total non-amortizable intangible assets		7,800		—			7,800

Total intangible assets	$	18,950	$	(3,228	)	$	15,722

The Company recorded amortization during the respective periods for these intangible assets as follows:


(In thousands)	Three months ended March 31,				Nine months ended March 31,
	2013		2012		2013		2012
Amortization on intangible assets	$	194	$	275	$	701	$	825

- 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.

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