Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets (Notes)

v3.19.3.a.u2
Goodwill and Intangible Assets (Notes)
9 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block] Goodwill and Intangible Assets
The following table highlights the Company’s intangible assets (amounts in thousands):
 
 
December 31, 2019
 
March 31, 2019
 
 
Carrying
Amount
 
Accumulated
Amortization
 
Net Amount
 
Carrying
Amount
 
Accumulated
Amortization
 
Net Amount
Indefinite Lived Intangible Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
 
$
15,314

 
$

 
$
15,314

 
$
15,151

 
$

 
$
15,151

In-process research and development (1)
 
3,279

 

 
3,279

 

 

 

Total indefinite lived intangibles (2)
 
18,593

 

 
18,593

 
15,151

 

 
15,151

Amortizing Intangibles:
 
 
 
 
 

 
 
 
 
 
 
Patents and acquired technology (3 - 18 years) (2)
 
27,755

 
(13,293
)
 
14,462

 
26,662

 
(12,046
)
 
14,616

Customer relationships (10 - 21 years)
 
38,352

 
(16,290
)
 
22,062

 
37,850

 
(13,868
)
 
23,982

Other
 
214

 
(214
)
 

 
214

 
(214
)
 

Total amortizing intangibles
 
66,321

 
(29,797
)
 
36,524

 
64,726

 
(26,128
)
 
38,598

Total intangible assets
 
$
84,914

 
$
(29,797
)
 
$
55,117

 
$
79,877

 
$
(26,128
)
 
$
53,749

_________________
(1) In-process research and development relates to haptic actuator products under development and expected to be commercialized in the future. In-process research and development was capitalized upon the acquisition of Novasentis. Refer to Note 3, “Acquisition” for more details on the Novasentis acquisition.
(2) Amounts capitalized for Novasentis are estimates based upon the preliminary purchase price allocation. These amounts are subject to change pending further review of the acquired business.
For the three months ended December 31, 2019 and 2018, amortization related to intangibles was $1.2 million and $1.1 million, respectively, consisting of amortization related to patents and acquired technology of $0.4 million for each period and amortization related to customer relationships of $0.8 million and $0.7 million, respectively. For the nine months ended December 31, 2019 and 2018, amortization related to intangibles was $3.6 million and $3.4 million, respectively, consisting of amortization related to patents and acquired technology of $1.2 million and $1.1 million, respectively, and amortization related to customer relationships of $2.3 million for each period.
The weighted-average useful life for patents and acquired technology was 15.3 and 15.8 years as of December 31, 2019 and March 31, 2019, respectively, and 12.2 and 12.3 years for customer relationships as of December 31, 2019 and March 31, 2019, respectively. Estimated amortization of intangible assets for each of the next five fiscal years is $4.9 million, and thereafter, amortization will total $12.2 million. Estimated amortization of patents and acquired technology for each of the next five fiscal years is $1.8 million, and thereafter, amortization will total $5.5 million. Estimated amortization of customer relationships for each of the next five fiscal years is $3.1 million, and thereafter, amortization will total $6.6 million.
There were no changes to the carrying amount of goodwill during the three months ended December 31, 2019. The Company’s goodwill balance was $40.3 million at December 31, 2019 and March 31, 2019.