Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.21.2
Goodwill and Intangible Assets
6 Months Ended
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible AssetsAs a result of the acquisition of Trapelo in April 2021, the Company recorded $44.7 million in goodwill, all of which was recorded in the Clinical Services segment. As a result of the acquisition of Inivata in June 2021, the Company recorded $244.2 million in goodwill, of which $214.5 million and $29.7 million is assigned to the Clinical Services and Pharma Services segments, respectively. For further information regarding the Trapelo and Inivata acquisitions, please refer to Note 3. Acquisitions.
The following table summarizes the changes in the carrying amount of goodwill by segment for the six months ended June 30, 2021 (in thousands):
Clinical Services Pharma Services Total
Balance as of December 31, 2020 $ 179,534  $ 31,549  $ 211,083 
Trapelo acquisition 44,664  —  44,664 
Inivata acquisition 214,563  29,667  244,230 
Balance as of June 30, 2021 $ 438,761  $ 61,216  $ 499,977 
Intangible assets consisted of the following (in thousands):
    June 30, 2021
  Amortization
Period
Cost Accumulated
Amortization
Net
Customer Relationships
7 - 15 years
$ 143,101  $ 40,811  $ 102,290 
Developed Technology
10 - 15 years
322,022  1,167  320,855 
Marketing Assets
4 years
549  32  517 
Trademarks
15 years
31,700  76  31,624 
Trade Name
5 years
2,322  17  2,305 
Trademark - Indefinite lived —  13,447  —  13,447 
Total   $ 513,141  $ 42,103  $ 471,038 
 
    December 31, 2020
  Amortization
Period
Cost Accumulated
Amortization
Net
Customer Relationships
7 - 15 years
$ 143,101  $ 35,895  $ 107,206 
Trademark - Indefinite lived —  13,447  —  13,447 
Total $ 156,548  $ 35,895  $ 120,653 
 
The Company records amortization expense within cost of revenue and general and administrative expense on the Consolidated Statement of Operations. The following table summarized the amortization expense for the three and six months ended June 30, 2021 and 2020 (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Amortization of intangibles included in cost of revenue $ 729  $ —  $ 729  $ — 
Amortization of intangibles included in general and administrative expenses 3,022  2,467 5,480 4,919
Total amortization of intangibles $ 3,751  $ 2,467  $ 6,209  $ 4,919 
The estimated amortization expense related to amortizable intangible assets for each of the following periods as of June 30, 2021 is as follows (in thousands):
 
Remainder of 2021 $ 17,326 
2022 34,650 
2023 34,650 
2024 34,650 
2025 34,549 
Thereafter 301,766 
Total $ 457,591