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
9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
As 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 $270.1 million in goodwill, of which $237.3 million and $32.8 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 nine months ended September 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 237,251  32,804  270,055 
Balance as of September 30, 2021 $ 461,449  $ 64,353  $ 525,802 
Intangible assets consisted of the following (in thousands):
    September 30, 2021
  Amortization
Period
Cost Accumulated
Amortization
Net
Customer Relationships
7 - 15 years
$ 143,101  $ 43,286  $ 99,815 
Developed Technology
10 - 15 years
310,226  6,469  303,757 
Marketing Assets
4 years
549  66  483 
Trademarks
15 years
31,473  601  30,872 
Trade Name
5 years
2,575  147  2,428 
Trademark - Indefinite lived —  13,447  —  13,447 
Total   $ 501,371  $ 50,569  $ 450,802 
 
    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 summarizes the amortization expense for the three and nine months ended September 30, 2021 and 2020 (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
Amortization of intangibles included in cost of revenue $ 4,825  $ —  $ 5,554  $ — 
Amortization of intangibles included in general and administrative expenses 3,649  2,468 9,129 7,387
Total amortization of intangibles $ 8,474  $ 2,468  $ 14,683  $ 7,387 
The estimated amortization expense related to amortizable intangible assets for each of the following periods as of September 30, 2021 is as follows (in thousands):
 
Remainder of 2021 $ 8,457 
2022 33,899 
2023 33,899 
2024 33,899 
2025 33,798 
Thereafter 293,403 
Total $ 437,355