Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6: Goodwill and Intangible Assets

Goodwill

Goodwill is tested for impairment at the reporting unit level, which is one level below the Company's operating segments. The Company performed qualitative assessments for the annual impairment analysis during the fourth quarters of 2019 and 2018 and concluded that it is more likely than not that the fair value of its reporting units exceed their carrying amounts and a quantitative impairment test was not required.

The following table summarizes goodwill by operating and reportable segments (in millions):


	As of December 31, 2019										As of December 31, 2018									As of December 31, 2017
	Goodwill		Accumulated Impairment Losses		Carrying Value		Goodwill		Accumulated Impairment Losses			Carrying Value		Goodwill		Accumulated Impairment Losses		Carrying Value
Operating and Reportable Segments:
ASG	$	1,563.4	$	(418.9)	$	1,144.5	$	836.7	$	(418.9)		$	417.8	$	836.7	$	(418.9)	$	417.8
ISG	114.4		—		114.4		114.4		—			114.4		95.5		—		95.5
PSG	432.2		(31.9)		400.3		432.2		(31.9)			400.3		432.2		(28.6)		403.6
Total	$	2,110.0	$	(450.8)	$	1,659.2	$	1,383.3	$	(450.8)		$	932.5	$	1,364.4	$	(447.5)	$	916.9

The following table summarizes the change in goodwill (in millions):


Net balance as of December 31, 2017	$	916.9
Addition due to business combination	18.9
Goodwill impairment	(3.3)
Net balance as of December 31, 2018	932.5
Addition due to business combination	726.7

Net balance as of December 31, 2019	$	1,659.2

The goodwill impairment charge of $3.3 million in 2018 was the result of the licensing transaction with QST and represented the entire goodwill assigned to a reporting unit within PSG.

Intangible Assets

Intangible assets, net, were as follows (in millions):


	As of December 31, 2019
	Original Cost		Accumulated Amortization		Accumulated Impairment Losses		Carrying Value

Customer relationships	$	585.2	$	(386.8)	$	(20.1)	$	178.3

Developed technology	779.5		(440.3)		(2.6)		336.6



IPRD	64.7		—		(24.1)		40.6
Licenses	30.0		—		—		30.0
Other intangibles	79.3		(59.1)		(15.2)		5.0
Total intangible assets	$	1,538.7	$	(886.2)	$	(62.0)	$	590.5


	As of December 31, 2018
	Original Cost		Accumulated Amortization		Accumulated Impairment Losses		Carrying Value

Customer relationships	$	556.7	$	(359.1)	$	(20.1)	$	177.5

Developed technology	698.0		(356.4)		(2.6)		339.0



IPRD	64.1		—		(22.5)		41.6
Other intangibles	82.3		(58.8)		(15.2)		8.3
Total intangible assets	$	1,401.1	$	(774.3)	$	(60.4)	$	566.4

During the year ended December 31, 2019, the Company abandoned two previously capitalized IPRD projects under ISG and recorded aggregate impairment losses in the amount of $1.6 million. The Company also completed certain of its IPRD projects resulting in the reclassification of $23.2 million from IPRD to developed technology.

During the year ended December 31, 2018, the Company determined that the value of one of its IPRD projects under ISG was impaired and recorded a charge of $3.5 million. The Company also completed certain of its IPRD projects resulting in the reclassification of $10.4 million from IPRD to developed technology.

During the year ended December 31, 2017, the Company recorded impairment charges of $13.1 million related to cancellation and impairment of certain of its previously capitalized IPRD projects under PSG and ASG. The Company also completed certain of its IPRD projects, resulting in the reclassification of $99.4 million from IPRD to developed technology and disposed of $8.7 million of intangible assets as part of the Xsens Transaction.

Amortization expense for intangible assets for the years ended December 31, 2019, 2018 and 2017 amounted to $115.2 million, $111.7 million and $123.8 million, respectively. Amortization expense for intangible assets, with the exception of the $40.6 million of IPRD assets that will be amortized once the corresponding projects have been completed, is expected to be as follows over the next five years, and thereafter (in millions):


	Total
2020	$	116.5
2021	94.9
2022	80.6
2023	63.2
2024	52.1
Thereafter	142.6
Total estimated amortization expense	$	549.9