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Goodwill and Intangible Assets
6 Months Ended
Mar. 31, 2019
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 six months ended March 31, 2019. 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 March 31, 2019 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

 

 

(184)

 

 

236,834

 

 

 —

 

 

236,650

Gross goodwill, at March 31, 2019

 

 

636,723

 

 

444,747

 

 

26,014

 

 

1,107,484

Accumulated goodwill impairments

 

 

(588,944)

 

 

 —

 

 

(26,014)

 

 

(614,958)

Goodwill, net of accumulated impairments, at March 31, 2019

 

$

47,779

 

$

444,747

 

$

 —

 

$

492,526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

During the six months ended March 31, 2019, the Company recorded a goodwill increase of $236.8 million primarily related to the acquisition of GENEWIZ. Please refer to Note 5 "Acquisitions" for further information on this transaction.

The components of the Company’s identifiable intangible assets as of March 31, 2019 and September 30, 2018 are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2019

 

September 30, 2018

 

 

 

 

Accumulated

 

Net Book

 

 

 

Accumulated

 

Net Book

 

    

Cost

    

Amortization

    

Value

    

Cost

    

Amortization

    

Value

Patents

 

$

5,302

 

$

4,477

 

$

825

 

$

5,302

 

$

4,325

 

$

977

Completed technology

 

 

88,724

 

 

33,592

 

 

55,132

 

 

44,829

 

 

28,934

 

 

15,895

Trademarks and trade names

 

 

25,318

 

 

4,225

 

 

21,093

 

 

6,298

 

 

2,953

 

 

3,345

Customer relationships

 

 

267,372

 

 

73,629

 

 

193,743

 

 

142,489

 

 

62,750

 

 

79,739

 

 

$

386,716

 

$

115,923

 

$

270,793

 

$

198,918

 

$

98,962

 

$

99,956

 

Amortization expense for intangible assets was $17.2 million and $11.1 million, respectively, during the six months ended March 31, 2019 and 2018.

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

 

$

17,993

2020

 

 

41,339

2021

 

 

37,546

2022

 

 

34,545

2023

 

 

31,589

Thereafter

 

 

107,781

 

 

$

270,793