Goodwill and Intangible Assets

3 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the excess of net book value over the estimated fair value of net tangible and identifiable intangible assets of a reporting unit. Goodwill is tested for impairment annually or more often if impairment indicators are present at the reporting unit level. During fiscal year 2015, the Company completed the annual goodwill impairment test and determined that no adjustment to goodwill was necessary since the fair value of all reporting units substantially exceeded their respective carrying values. If events occur or circumstances change that would more likely than not reduce fair values of the reporting units below their carrying values, goodwill will be evaluated for impairment between annual tests. No triggering events indicating goodwill impairment occurred during the three months ended December 31, 2015 that would warrant interim testing.

The components of the Company’s goodwill by business segment at December 31, 2015 and September 30, 2015 are as follows (in thousands):



	Brooks Product Solutions			Brooks Global Services			Brooks Life Science Systems		Other			Total
Gross goodwill, at September 30, 2014	$	494,275		$	156,792		$	47,378	$	26,014		$	724,459
Accumulated goodwill impairments	(437,706		)	(151,238		)	—		(26,014		)	(614,958		)
Goodwill, net of accumulated impairments, at September 30, 2014	56,569			5,554			47,378		—			109,501
Acquisitions and adjustments	3,660			—			8,247		—			11,907
Gross goodwill, at September 30, 2015	497,935			156,792			55,625		26,014			736,366
Accumulated goodwill impairments	(437,706		)	(151,238		)	—		(26,014		)	(614,958		)
Goodwill, net of accumulated impairments, at September 30, 2015	60,229			5,554			55,625		—			121,408
Acquisitions and adjustments	1,050			—			79,889		—			80,939
Gross goodwill, at December 31, 2015	498,985			156,792			135,514		26,014			817,305
Accumulated goodwill impairments	(437,706		)	(151,238		)	—		(26,014		)	(614,958		)
Goodwill, net of accumulated impairments, at December 31, 2015	$	61,279		$	5,554		$	135,514	$	—		$	202,347

During the three months ended December 31, 2015, the Company recorded a goodwill increase of $79.9 million related to the acquisition of BioStorage which represented the excess of the consideration transferred over the fair value of the net assets acquired. Additionally, the Company recorded a measurement period adjustment related to the acquisition of Contact which resulted in a decrease in the tangible assets' fair value of $1.1 million and a corresponding increase in goodwill. Please refer to the Note 4 "Acquisitions" for further information on the measurement period adjustment recorded during the three months ended December 31, 2015.

The components of the Company’s identifiable intangible assets as of December 31, 2015 and September 30, 2015 are as follows (in thousands):



	December 31, 2015						September 30, 2015
	Cost		Accumulated Amortization		Net Book Value		Cost		Accumulated Amortization		Net Book Value
Patents	$	7,808	$	7,417	$	391	$	7,808	$	7,394	$	414
Completed technology	60,705		47,967		12,738		60,748		46,718		14,030
Trademarks and trade names	9,150		3,684		5,466		4,241		3,604		637
Customer relationships	114,123		39,431		74,692		77,716		37,351		40,365
Total intangible assets	$	191,786	$	98,499	$	93,287	$	150,513	$	95,067	$	55,446

Amortization expense for intangible assets was $3.5 million and $3.2 million for the three months ended December 31, 2015 and 2014, respectively.

Estimated future amortization expense for the intangible assets for the fiscal year 2016 and the subsequent four fiscal years is as follows (in thousands):



Fiscal year ended September 30,
2016	$	11,517
2017	15,566
2018	14,052
2019	13,713
2020	12,909
Thereafter	25,530
	$	93,287

- 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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