| INTANGIBLE ASSETS |
11. GOODWILL & INTANGIBLE ASSETS
The carrying amount of goodwill at December 31, 2021 and 2020 was $639.3 million and $2.3 million, respectively, and has been recorded in connection with the Company’s acquisitions. The goodwill activity is as follows (in thousands):
|
|
|
|
|
|
|
Goodwill |
Balance at December 31, 2019 |
|
$ |
2,252 |
Balance at December 31, 2020 |
|
$ |
2,252 |
Acquisition of EnvisionTEC |
|
|
195,688 |
Acquisition of Adaptive3D |
|
|
35,113 |
Acquisition of Aerosint |
|
|
14,581 |
Acquisition of Dental Arts Labs |
|
|
8,839 |
Acquisition of A.I.D.R.O. |
|
|
3,515 |
Acquisition of Brewer Dental |
|
|
2,463 |
Acquisition of May Dental |
|
|
6,782 |
Acquisition of ExOne |
|
|
374,636 |
Foreign currency translation adjustment |
|
|
(4,568) |
Balance at December 31, 2021 |
|
$ |
639,301 |
The Company has no accumulated impairment losses on goodwill.
The following table sets forth the major categories of intangible assets and the weighted-average remaining useful lives for those assets that are not already fully amortized (in thousands):
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|
|
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|
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|
|
|
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|
|
|
|
|
December 31, 2021 |
|
December 31, 2020 |
|
|
Weighted Average |
|
Gross |
|
|
|
|
Net |
|
Gross |
|
|
|
|
Net |
|
|
Remaining Useful |
|
Carrying |
|
Accumulated |
|
Carrying |
|
Carrying |
|
Accumulated |
|
Carrying |
|
|
Lives (in years) |
|
Amount |
|
Amortization |
|
Amount |
|
Amount |
|
Amortization |
|
Amount |
Acquired technology |
|
9.2 |
|
|
$ |
198,631 |
|
$ |
11,421 |
|
$ |
187,210 |
|
$ |
10,193 |
|
$ |
1,091 |
|
$ |
9,102 |
Trade name |
|
10.8 |
|
|
|
12,475 |
|
|
684 |
|
|
11,791 |
|
|
— |
|
|
— |
|
|
— |
Customer relationships |
|
10.8 |
|
|
|
69,127 |
|
|
6,296 |
|
|
62,831 |
|
|
— |
|
|
— |
|
|
— |
Capitalized software |
|
1.5 |
|
|
|
518 |
|
|
366 |
|
|
152 |
|
|
1,127 |
|
|
815 |
|
|
312 |
Total intangible assets |
|
|
|
|
$ |
280,751 |
|
$ |
18,767 |
|
$ |
261,984 |
|
$ |
11,320 |
|
$ |
1,906 |
|
$ |
9,414 |
The Company recognized $17.5 million and $0.9 million of amortization expense for years ended December 31, 2021 and 2020, respectively, as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of |
|
Amortization |
|
Amortization |
|
|
Operations |
|
Expense |
|
Expense |
Category |
|
Line Item |
|
December 31, 2021 |
|
December 31, 2020 |
Acquired technology |
|
Cost of Sales |
|
$ |
8,569 |
|
$ |
114 |
Acquired technology |
|
Research and Development |
|
|
1,761 |
|
|
646 |
Trade name |
|
General and Administrative |
|
|
685 |
|
|
— |
Customer relationships |
|
Sales and Marketing |
|
|
6,339 |
|
|
— |
Capitalized software |
|
Research and Development |
|
|
161 |
|
|
128 |
|
|
|
|
|
|
$ |
17,515 |
|
$ |
888 |
The Company expects to recognize the following amortization expense (in thousands):
|
|
|
|
|
|
Amortization |
2022 |
|
$ |
39,307 |
2023 |
|
|
42,206 |
2024 |
|
|
42,263 |
2025 |
|
|
39,747 |
2026 |
|
|
29,854 |
2027 and after |
|
|
68,607 |
Total intangible amortization |
|
$ |
261,984 |
|