Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

9)	Goodwill and Intangible Assets

Goodwill

The Company’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the cost of the acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. The Company assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process.

Goodwill and purchased intangible assets with indefinite useful lives are not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment. The Company regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results.

The changes in the carrying amount of goodwill and accumulated impairment (loss) during the three months ended March 31, 2018 and year ended December 31, 2017 were as follows:


	Three Months Ended March 31, 2018							Twelve Months Ended December 31, 2017
	Gross Carrying Amount		Accumulated Impairment (Loss)			Net		Gross Carrying Amount			Accumulated Impairment (Loss)			Net
Beginning balance at January 1	$	735,323	$	(144,276	)	$	591,047	$	727,999		$	(139,414	)	$	588,585
Sale of business⁽¹⁾		—		—			—		(3,115	)		—			(3,115	)
Impairment loss⁽²⁾		—		—			—		—			(4,862	)		(4,862	)
Foreign currency translation		2,447		—			2,447		10,439			—			10,439

Ending balance at March 31, 2018 and December 31, 2017	$	737,770	$	(144,276	)	$	593,494	$	735,323		$	(144,276	)	$	591,047

⁽¹⁾

In 2017, the Company sold its Data Analytics business and, as a result, charged the related goodwill of $(3,115) to the gain on sale of business.

⁽²⁾

In 2017, the Company recorded an impairment loss of $(4,862) related to the write-off of goodwill related to the discontinuation of a product line and consolidation of two manufacturing plants.

Intangible Assets

Components of the Company’s intangible assets are comprised of the following:


As of March 31, 2018:	Gross		Impairment Charges			Accumulated Amortization			Foreign Currency Translation		Net
Completed technology	$	172,431	$	(105	)	$	(120,898	)	$	425	$	51,853
Customer relationships		282,744		(1,406	)		(50,138	)		2,682		233,882
Patents, trademarks, trade names and other		110,523		—			(39,958	)		45		70,610

	$	565,698	$	(1,511	)	$	(210,994	)	$	3,152	$	356,345


As of December 31, 2017:	Gross		Impairment Charges⁽²⁾			Accumulated Amortization			Foreign Currency Translation			Net
Completed technology⁽¹⁾	$	172,431	$	(105	)	$	(115,371	)	$	333		$	57,288
Customer relationships⁽¹⁾		282,744		(1,406	)		(45,518	)		1,571			237,391
Patents, trademarks, trade names and other⁽¹⁾		110,523		—			(38,730	)		(74	)		71,719

	$	565,698	$	(1,511	)	$	(199,619	)	$	1,830		$	366,398

⁽¹⁾

In 2017, the Company sold its Data Analytics business and, as a result, wrote off the related intangibles of $4,155 of completed technology, $2,300 of customer relationships and $1,200 of patents, trademarks, trade names and other, which were fully amortized at the time of sale.

⁽²⁾

In 2017, the Company recorded impairment charges of $1,511 related to the write-off of intangible assets as a result of the discontinuation of a product line and consolidation of two manufacturing plants.

Aggregate amortization expense related to acquired intangibles for the three months ended March 31, 2018 and 2017 was $11,190 and $12,501, respectively. The amortization expense for the three months ended March 31, 2018 and 2017, was net of $185 and $177, respectively, of amortization income from unfavorable lease commitments. Aggregate net amortization expense related to acquired intangible assets and unfavorable lease commitments for future years is as follows:


Year	Amount
2018 (remaining)	$	32,596
2019		40,511
2020		28,393
2021		20,485
2022		17,811
2023		17,427
Thereafter		140,413

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details