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Goodwill and Intangible Assets
3 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

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. 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, 2018. Please refer to Note 7, "Goodwill and Intangible Assets" to the Company's consolidated financial statements included in the 2018 Annual Report on Form 10-K for further information on the goodwill impairment testing performed during fiscal year 2018.

The components of the Company’s goodwill by operating segment at December 31, 2018 and September 30, 2018 are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Brooks

    

 

 

    

 

 

    

 

 

 

 

Semiconductor

 

 

 

 

 

 

 

 

 

 

Solutions

 

Brooks

 

 

 

 

 

 

 

 

Group

 

Life Sciences

 

Other

 

Total

Gross goodwill, at September 30, 2018

 

$

636,907

 

$

207,913

 

$

26,014

 

$

870,834

Accumulated goodwill impairments

 

 

(588,944)

 

 

 —

 

 

(26,014)

 

 

(614,958)

Goodwill, net of accumulated impairments, at September 30, 2018

 

 

47,963

 

 

207,913

 

 

 —

 

 

255,876

Acquisitions and adjustments

 

 

(167)

 

 

234,816

 

 

 —

 

 

234,649

Gross goodwill, at December 31, 2018

 

 

636,740

 

 

442,729

 

 

26,014

 

 

1,105,483

Accumulated goodwill impairments

 

 

(588,944)

 

 

 —

 

 

(26,014)

 

 

(614,958)

Goodwill, net of accumulated impairments, at December 31, 2018

 

$

47,796

 

$

442,729

 

$

 —

 

$

490,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

During the three months ended December 31, 2018, the Company recorded a goodwill increase of $234.6 million primarily related to the acquisition of GENEWIZ which represented the excess of the consideration transferred over the fair value of the net assets acquired. Please refer to the Note 5 "Acquisitions" for further information on this transaction.

The components of the Company’s identifiable intangible assets as of December 31, 2018 and September 30, 2018 are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

September 30, 2018

 

 

 

 

Accumulated

 

Net Book

 

 

 

Accumulated

 

Net Book

 

    

Cost

    

Amortization

    

Value

    

Cost

    

Amortization

    

Value

Patents

 

$

5,302

 

$

4,401

 

$

901

 

$

5,302

 

$

4,325

 

$

977

Completed technology

 

 

88,475

 

 

30,790

 

 

57,685

 

 

44,829

 

 

28,934

 

 

15,895

Trademarks and trade names

 

 

25,316

 

 

3,444

 

 

21,872

 

 

6,298

 

 

2,953

 

 

3,345

Customer relationships

 

 

266,425

 

 

67,650

 

 

198,775

 

 

142,489

 

 

62,750

 

 

79,739

 

 

$

385,518

 

$

106,285

 

$

279,233

 

$

198,918

 

$

98,962

 

$

99,956

 

Amortization expense for intangible assets was $7.8 million and $5.5 million, respectively, during the three months ended December 31, 2018 and 2017.

Estimated future amortization expense for the intangible assets for the remainder of fiscal year 2019, the subsequent four fiscal years and thereafter is as follows (in thousands):

 

 

 

 

Fiscal year ended September 30, 

    

 

  

2019

 

$

26,976

2020

 

 

41,340

2021

 

 

37,547

2022

 

 

34,545

2023

 

 

31,589

Thereafter

 

 

107,236

 

 

$

279,233