| Goodwill, Intangible Assets and Impairment Charges |
6. Goodwill, Intangible Assets and Impairment Charges Goodwill The following table summarizes changes in goodwill during the year ended December 31, 2025 (in thousands):
|
|
|
|
|
Amount |
|
Balance at beginning of year |
$ |
584,098 |
|
Goodwill from current year acquisitions |
|
43,192 |
|
Effect of foreign exchange rate changes |
|
20,058 |
|
Balance at end of year |
$ |
647,348 |
|
Goodwill by reportable segment as of December 31, 2025 was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable Segment |
|
|
|
|
|
Automation Enabling Technologies |
|
|
Medical Solutions |
|
|
Total |
|
Goodwill |
$ |
447,313 |
|
|
$ |
351,264 |
|
|
$ |
798,577 |
|
Accumulated impairment of goodwill |
|
(119,507 |
) |
|
|
(31,722 |
) |
|
|
(151,229 |
) |
Total |
$ |
327,806 |
|
|
$ |
319,542 |
|
|
$ |
647,348 |
|
Goodwill by reportable segment as of December 31, 2024 was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable Segment |
|
|
|
|
|
Automation Enabling Technologies |
|
|
Medical Solutions |
|
|
Total |
|
Goodwill |
$ |
439,980 |
|
|
$ |
295,347 |
|
|
$ |
735,327 |
|
Accumulated impairment of goodwill |
|
(119,507 |
) |
|
|
(31,722 |
) |
|
|
(151,229 |
) |
Total |
$ |
320,473 |
|
|
$ |
263,625 |
|
|
$ |
584,098 |
|
Intangible Assets Intangible assets as of December 31, 2025 and 2024, respectively, are summarized as follows (dollar amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
Gross Carrying
Amount |
|
|
Accumulated
Amortization |
|
|
Net Carrying
Amount |
|
|
Weighted Average Remaining Life (Years) |
|
Amortizable intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
Patents and developed technologies |
$ |
235,851 |
|
|
$ |
(180,798 |
) |
|
$ |
55,053 |
|
|
|
7.0 |
|
Customer relationships |
|
296,868 |
|
|
|
(191,037 |
) |
|
|
105,831 |
|
|
|
11.7 |
|
Trademarks and trade names |
|
25,261 |
|
|
|
(18,396 |
) |
|
|
6,865 |
|
|
|
9.3 |
|
Amortizable intangible assets |
|
557,980 |
|
|
|
(390,231 |
) |
|
|
167,749 |
|
|
|
10.0 |
|
Non-amortizable intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
Trade names |
|
13,027 |
|
|
|
— |
|
|
|
13,027 |
|
|
|
|
Total |
$ |
571,007 |
|
|
$ |
(390,231 |
) |
|
$ |
180,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
|
Gross Carrying
Amount |
|
|
Accumulated
Amortization |
|
|
Net Carrying
Amount |
|
|
Weighted Average Remaining Life (Years) |
|
Amortizable intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
Patents and developed technologies |
$ |
218,867 |
|
|
$ |
(159,041 |
) |
|
$ |
59,826 |
|
|
|
7.6 |
|
Customer relationships |
|
265,156 |
|
|
|
(158,938 |
) |
|
|
106,218 |
|
|
|
13.2 |
|
Trademarks and trade names |
|
23,367 |
|
|
|
(16,594 |
) |
|
|
6,773 |
|
|
|
9.2 |
|
Amortizable intangible assets |
|
507,390 |
|
|
|
(334,573 |
) |
|
|
172,817 |
|
|
|
11.1 |
|
Non-amortizable intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
Trade names |
|
13,027 |
|
|
|
— |
|
|
|
13,027 |
|
|
|
|
Total |
$ |
520,417 |
|
|
$ |
(334,573 |
) |
|
$ |
185,844 |
|
|
|
|
All definite-lived intangible assets are amortized either on a straight-line basis or an economic benefit basis over their remaining estimated useful life. Amortization expense for patents and developed technologies is included in cost of revenue in the accompanying consolidated statements of operations. Amortization expense for customer relationships and definite-lived trademarks, trade names and other intangibles is included in operating expenses in the accompanying consolidated statements of operations. Amortization expense for the periods presented was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Amortization expense – cost of revenue |
$ |
16,276 |
|
|
$ |
14,773 |
|
|
$ |
12,150 |
|
Amortization expense – operating expenses |
|
27,477 |
|
|
|
25,794 |
|
|
|
20,445 |
|
Total amortization expense |
$ |
43,753 |
|
|
$ |
40,567 |
|
|
$ |
32,595 |
|
Estimated future amortization expense for each of the five succeeding years and thereafter is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ending December 31, |
|
Cost of
Revenue |
|
|
Operating
Expenses |
|
|
Total |
|
2026 |
|
$ |
15,044 |
|
|
$ |
23,111 |
|
|
$ |
38,155 |
|
2027 |
|
|
12,118 |
|
|
|
19,263 |
|
|
|
31,381 |
|
2028 |
|
|
10,311 |
|
|
|
16,221 |
|
|
|
26,532 |
|
2029 |
|
|
7,440 |
|
|
|
12,616 |
|
|
|
20,056 |
|
2030 |
|
|
4,764 |
|
|
|
10,129 |
|
|
|
14,893 |
|
Thereafter |
|
|
5,376 |
|
|
|
31,356 |
|
|
|
36,732 |
|
Total |
|
$ |
55,053 |
|
|
$ |
112,696 |
|
|
$ |
167,749 |
|
Impairment Charges The Company did not have any goodwill or indefinite-lived intangible asset impairment charges during the years ended December 31, 2025, 2024, or 2023.
|