GOODWILL & INTANGIBLE ASSETS |
11. GOODWILL & INTANGIBLE ASSETS
The carrying amount of goodwill at March 31, 2022 and December 31, 2021 was $630.0 million and $639.3 million respectively, and has been recorded in connection with the Company’s acquisitions. The goodwill activity is as follows (in thousands):
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Goodwill |
Balance at December 31, 2020 |
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$ |
2,252 |
Acquisition of EnvisionTEC |
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|
195,688 |
Acquisition of Adaptive3D |
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|
35,113 |
Acquisition of Aerosint |
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|
14,581 |
Acquisition of Dental Arts Labs |
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|
8,839 |
Acquisition of A.I.D.R.O. |
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|
3,515 |
Acquisition of Brewer Dental |
|
|
2,463 |
Acquisition of May Dental |
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|
6,782 |
Acquisition of ExOne |
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|
374,636 |
Foreign currency translation adjustment |
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|
(4,568) |
Balance at December 31, 2021 |
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$ |
639,301 |
May Dental working capital adjustment |
|
|
23 |
Foreign currency translation adjustment |
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|
(9,302) |
Balance at March 31, 2022 |
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$ |
630,022 |
The Company has no accumulated impairment losses on goodwill.
Intangible assets consisted of the following (in thousands):
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March 31, 2022 |
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December 31, 2021 |
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Weighted Average |
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Gross |
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Net |
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Gross |
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Net |
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Remaining Useful |
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Carrying |
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Accumulated |
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Carrying |
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Carrying |
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Accumulated |
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Carrying |
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Lives (in years) |
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Amount |
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Amortization |
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Amount |
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Amount |
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Amortization |
|
Amount |
Acquired technology |
|
9.0 |
|
|
$ |
197,828 |
|
$ |
17,833 |
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$ |
179,995 |
|
$ |
198,631 |
|
$ |
11,421 |
|
$ |
187,210 |
Trade name |
|
10.7 |
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|
12,469 |
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|
1,106 |
|
|
11,363 |
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|
12,475 |
|
|
684 |
|
|
11,791 |
Customer relationships |
|
10.5 |
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|
68,673 |
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|
9,156 |
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|
59,517 |
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|
69,127 |
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|
6,296 |
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|
62,831 |
Capitalized software |
|
1.3 |
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|
|
518 |
|
|
393 |
|
|
125 |
|
|
518 |
|
|
366 |
|
|
152 |
Total intangible assets |
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$ |
279,488 |
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$ |
28,488 |
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$ |
251,000 |
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$ |
280,751 |
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$ |
18,767 |
|
$ |
261,984 |
The Company recognized $9.8 million of amortization expense during the three months ended March 31, 2022. The Company recognized $2.3 million of amortization expense during the three months ended March 31, 2021.
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Statement of |
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Amortization |
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Amortization |
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Operations |
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Expense |
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Expense |
Category |
|
Line Item |
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March 31, 2022 |
|
March 31, 2021 |
Acquired technology |
|
Cost of Sales |
|
$ |
5,990 |
|
$ |
1,091 |
Acquired technology |
|
Research and Development |
|
|
443 |
|
|
506 |
Trade name |
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General and Administrative |
|
|
422 |
|
|
80 |
Customer relationships |
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Sales and Marketing |
|
|
2,902 |
|
|
621 |
Capitalized software |
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Research and Development |
|
|
27 |
|
|
45 |
|
|
|
|
|
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$ |
9,784 |
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$ |
2,343 |
The Company expects to recognize the following amortization expense (in thousands):
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Amortization Expense |
2022 (remaining 9 months) |
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$ |
29,340 |
2023 |
|
|
42,010 |
2024 |
|
|
42,072 |
2025 |
|
|
39,562 |
2026 |
|
|
29,707 |
2027 and after |
|
|
68,309 |
Total intangible amortization |
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$ |
251,000 |
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