Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.5.0.2
Goodwill and Intangible Assets
6 Months Ended
Jun. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

Note D — Goodwill and Intangible Assets

The Company has recorded Goodwill of $146.2 million as of June 30, 2016.  The changes in the carrying amount of goodwill for the six month period ended June 30, 2016 and for the year ended December 31, 2015 are as follows (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

 

2016

 

 

2015

 

Balance as of January 1

 

$

146,421

 

 

$

2,929

 

Goodwill acquired during the period

 

 

-

 

 

 

143,492

 

Adjustment to preliminary value of goodwill (Note C)

 

 

(242

)

 

 

-

 

Balance at end of period

 

$

146,179

 

 

$

146,421

 

 

Intangible assets as of June 30, 2016 and December 31, 2015 consisted of the following (in thousands):

 

 

 

 

 

June 30, 2016

 

 

 

Amortization

Period

 

Cost

 

 

Accumulated

Amortization

 

 

Net

 

Trade Name

 

24 months

 

$

3,000

 

 

$

758

 

 

$

2,242

 

Customer Relationships

 

156 months

 

 

82,930

 

 

 

3,022

 

 

 

79,908

 

Support Vector Machine (SVM) technology

 

108 months

 

 

500

 

 

 

241

 

 

 

259

 

Laboratory developed test (LDT) technology

 

164 months

 

 

1,482

 

 

 

470

 

 

 

1,012

 

Flow Cytometry and Cytogenetics technology

 

202 months

 

 

1,000

 

 

 

257

 

 

 

743

 

Total

 

 

 

$

88,912

 

 

$

4,748

 

 

$

84,164

 

 

 

 

 

 

December 31, 2015

 

 

 

Amortization

Period

 

Cost

 

 

Accumulated

Amortization

 

 

Net

 

Trade Name

 

24 months

 

$

3,000

 

 

$

8

 

 

$

2,992

 

Customer Relationships

 

156 months

 

 

82,930

 

 

 

247

 

 

 

82,683

 

Support Vector Machine (SVM) technology

 

108 months

 

 

500

 

 

 

213

 

 

 

287

 

Laboratory developed test (LDT) technology

 

164 months

 

 

1,482

 

 

 

416

 

 

 

1,066

 

Flow Cytometry and Cytogenetics technology

 

202 months

 

 

1,000

 

 

 

228

 

 

 

772

 

Total

 

 

 

$

88,912

 

 

$

1,112

 

 

$

87,800

 

 

We recorded approximately $1.6 million and $97,000 in straight-line amortization expense of intangible assets for the three months ended June 30, 2016 and 2015, respectively.  We recorded approximately $3.6 million and $190,000 in straight-line amortization expense of intangibles for the six months ended June 30, 2016 and 2015, respectively.  The Company recorded amortization expense from customer relationships and trade names as a general and administrative expense.  We will continue to record the amortization of the Support Vector Machine (SVM) technology, the LDT technology and the Flow Cytometry and Cytogenetics technology intangible assets as a research and development expense until such time that we have products, services or cost savings directly attributable to these intangible assets that would require recordation in cost of goods sold.

The estimated amortization expense related to amortizable intangible assets for each of the five succeeding fiscal years and thereafter as of June 30, 2016 is as follows (in thousands):

 

Year Ending December 31,

 

 

 

 

Remainder of 2016

 

$

3,636

 

2017

 

 

7,264

 

2018

 

 

5,771

 

2019

 

 

5,771

 

2020

 

 

5,771

 

2021

 

 

5,726

 

Thereafter

 

 

50,225

 

Total

 

$

84,164