Goodwill and Intangible Assets

3 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

The Company conducts an impairment assessment annually, or more frequently if impairment indicators are present. Changes to the Company’s operating segments effective October 1, 2023 resulted in a change to the Company’s reporting units, which are aligned to the Company’s operating and reportable segments (as further described in Note 15 Segment and Geographic Information).

As a result of this segment realignment, the Company allocated goodwill to the reporting units existing under the new organizational structure on a relative fair value basis as of the first quarter of fiscal year 2024. The Company estimated the fair values of the affected businesses based upon the present value of their anticipated future cash flows. The Company’s determination of fair value involved judgment and the use of significant estimates and assumptions, as described in the notes to the audited consolidated financial statements included in the section titled “Financial Statements and Supplementary Data” in Part II, Item 8 of the 2023 Annual Report on Form 10-K and in the “Critical Accounting Policies and Estimates” included in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the 2023 Annual Report on Form 10-K.

In conjunction with the goodwill allocation described above, the Company tested its reporting units for potential impairment immediately before and after the segment realignment and concluded that the estimated fair value of each reporting unit exceeded its respective carrying value. As of October 1, 2023, the fair value of the B Medical Systems reporting unit exceeded its carrying value by approximately 5 percent. In the event the financial performance of any of the reporting units does not meet management’s expectations in the future, the Company experiences a prolonged macroeconomic or market downturn, or there are other negative revisions to key assumptions used in the Discounted Cash Flow (“DCF”) method used to value the reporting units, the Company may be required to perform additional impairment analyses with respect to such reporting unit and could be required to recognize an impairment charge.

The following table sets forth the changes in the carrying amount of goodwill by reportable segment since October 1, 2023 (in thousands). The Company has presented the October 1, 2023 balances to be consistent with the current segment structure.

	Sample Management Solutions		Multiomics		B Medical Systems		Total
Balance - October 1, 2023	$	478,601	$	196,760	$	108,978	$	784,339
Currency translation adjustments		10,925		—		4,902		15,827
Balance - December 31, 2023	$	489,526	$	196,760	$	113,880	$	800,166

The components of the Company’s identifiable intangible assets as of December 31, 2023 and September 30, 2023 are as follows (in thousands):

	December 31, 2023						September 30, 2023
			Accumulated		Net Book				Accumulated		Net Book
	Cost		Amortization		Value		Cost		Amortization		Value
Patents	$	1,226	$	1,180	$	46	$	1,226	$	1,175	$	51
Completed technology		222,259		62,712		159,547		215,430		56,021		159,409
Trademarks and trade names		6,902		1,900		5,002		6,630		1,445		5,185
Non-competition agreements		681		588		93		681		568		113
Customer relationships		295,879		170,338		125,541		290,800		161,257		129,543
Other intangibles		907		907		—		869		869		—
Total	$	527,854	$	237,625	$	290,229	$	515,636	$	221,335	$	294,301

Amortization expense for intangible assets was $12.5 million and $11.5 million, respectively, for the three months ended December 31, 2023 and 2022.

Estimated future amortization expense for the intangible assets for the remainder of fiscal year 2024 and the subsequent five fiscal years is as follows (in thousands):

Remainder of fiscal year 2024	$	38,369
2025		49,645
2026		46,244
2027		37,977
2028		31,446
2029		25,590