XML 25 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Intangible Assets
9 Months Ended
Jun. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible Assets

8. Intangible Assets

Intangible assets consist principally of acquired patents and technology, customer lists and relationships, licenses and trademarks. The Company recorded amortization expense of $0.7 million and $0.6 million for the three months ended June 30, 2018 and 2017, respectively. The Company recorded amortization expense of $2.0 million and $1.9 million for the nine months ended June 30, 2018 and 2017, respectively.

Intangible assets consisted of the following:

 

 

 

June 30, 2018

 

(Dollars in thousands)

 

Weighted Average Original Life (Years)

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net

 

Definite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer lists and relationships

 

 

8.9

 

 

$

18,168

 

 

$

(9,004

)

 

$

9,164

 

Developed technology

 

 

11.5

 

 

 

9,675

 

 

 

(2,139

)

 

 

7,536

 

Non-compete

 

 

5.0

 

 

 

230

 

 

 

(138

)

 

 

92

 

Patents and other

 

 

16.5

 

 

 

2,322

 

 

 

(1,533

)

 

 

789

 

Subtotal

 

 

 

 

 

 

30,395

 

 

 

(12,814

)

 

 

17,581

 

Unamortized intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In-process research and development

 

 

 

 

 

 

269

 

 

 

 

 

 

269

 

Trademarks and trade names

 

 

 

 

 

 

580

 

 

 

 

 

 

580

 

Total

 

 

 

 

 

$

31,244

 

 

$

(12,814

)

 

$

18,430

 

 

 

 

September 30, 2017

 

(Dollars in thousands)

 

Weighted Average Original Life (Years)

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net

 

Definite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer lists and relationships

 

 

8.9

 

 

$

18,293

 

 

$

(7,834

)

 

$

10,459

 

Developed technology

 

 

11.7

 

 

 

9,297

 

 

 

(1,478

)

 

 

7,819

 

Non-compete

 

 

5.0

 

 

 

230

 

 

 

(103

)

 

 

127

 

Patents and other

 

 

16.5

 

 

 

2,321

 

 

 

(1,423

)

 

 

898

 

Subtotal

 

 

 

 

 

 

30,141

 

 

 

(10,838

)

 

 

19,303

 

Unamortized intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In-process research and development

 

 

 

 

 

 

679

 

 

 

 

 

 

679

 

Trademarks and trade names

 

 

 

 

 

 

580

 

 

 

 

 

 

580

 

Total

 

 

 

 

 

$

31,400

 

 

$

(10,838

)

 

$

20,562

 

 

Based on the intangible assets in service as of June 30, 2018, excluding any possible future amortization associated with acquired in-process research and development (“IPR&D”), which has not met technological feasibility as of June 30, 2018, estimated amortization expense for the remainder of fiscal 2018 and each of the next five fiscal years is as follows (in thousands):

 

Remainder of 2018

 

$

675

 

2019

 

 

2,701

 

2020

 

 

2,526

 

2021

 

 

2,387

 

2022

 

 

2,347

 

2023

 

 

1,745

 

 

Future amortization amounts presented above are estimates. Actual future amortization expense may be different as a result of future acquisitions, impairments, completion or abandonment of IPR&D intangible assets, changes in amortization periods, foreign currency translation rates, or other factors.

The Company defines IPR&D as the value of technology acquired for which the related projects have substance and are incomplete. IPR&D acquired in a business acquisition is recognized at fair value and requires the IPR&D to be capitalized as an indefinite-lived intangible asset until completion of the IPR&D project or abandonment. Upon completion of the development project (generally when regulatory approval to market the product is obtained), an impairment assessment is performed prior to amortizing the asset over its estimated useful life. If the IPR&D projects are abandoned, the related IPR&D assets would be written off. During the first nine months of fiscal 2018, we reclassified $0.4 million of acquired IPR&D to developed technology as the technology was commercialized.