Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

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 2020 and 2019 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, 2020				As of December 31, 2019						As of December 31, 2018
	Goodwill		Accumulated Impairment Losses		Carrying Value		Goodwill		Accumulated Impairment Losses			Carrying Value		Goodwill		Accumulated Impairment Losses		Carrying Value
Operating and Reportable Segments:
ASG	$	1,566.3	$	(418.9)	$	1,147.4	$	1,563.4	$	(418.9)		$	1,144.5	$	836.7	$	(418.9)	$	417.8
ISG	114.7		—		114.7		114.4		—			114.4		114.4		—		114.4
PSG	433.2		(31.9)		401.3		432.2		(31.9)			400.3		432.2		(31.9)		400.3
Total	$	2,114.2	$	(450.8)	$	1,663.4	$	2,110.0	$	(450.8)		$	1,659.2	$	1,383.3	$	(450.8)	$	932.5

The Company recorded a goodwill impairment charge of $3.3 million in 2018 as a result of the licensing transaction with QST, which represented the entire goodwill assigned to a reporting unit within PSG.

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


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
Addition due to business combination	4.2

Net balance as of December 31, 2020	$	1,663.4

Intangible Assets

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


	As of December 31, 2020
	Original Cost		Accumulated Amortization		Accumulated Impairment Losses		Carrying Value

Customer relationships	$	581.5	$	(411.7)	$	(17.6)	$	152.2

Developed technology	794.7		(532.9)		(2.6)		259.2



IPRD	49.5		—		(25.4)		24.1
Licenses	30.0		—		—		30.0
Other intangibles	79.3		(60.6)		(15.2)		3.5
Total intangible assets	$	1,535.0	$	(1,005.2)	$	(60.8)	$	469.0


	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

During the years ended December 31, 2020 and December 31, 2019, the Company completed certain of its IPRD projects resulting in the reclassification of $15.2 million and $23.2 million, respectively, 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.

Amortization expense for intangible assets for the years ended December 31, 2020, 2019 and 2018 amounted to $120.3 million, $115.2 million and $111.7 million, respectively. Amortization expense for intangible assets, with the exception of the $24.1 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
2021	$	99.2
2022	83.8
2023	65.9
2024	54.1
2025	41.1
Thereafter	100.8
Total estimated amortization expense	$	444.9