Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

8) 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, 2022 and twelve months ended December 31, 2021 were as follows:


	Three Months Ended March 31, 2022									Twelve Months Ended December 31, 2021
	Gross Carrying Amount			Accumulated Impairment Loss			Net			Gross Carrying Amount			Accumulated Impairment Loss			Net
Beginning balance at January 1	$	1,373		$	(145	)	$	1,228		$	1,211		$	(145	)	$	1,066
Acquired goodwill(1)		—			—			—			168			—			168
Foreign currency translation		(1	)		—			(1	)		(6	)		—			(6	)
Ending balance	$	1,372		$	(145	)	$	1,227		$	1,373		$	(145	)	$	1,228

(1)

During the twelve months ended December 31, 2021, the Company recorded goodwill related to the acquisition of Photon Control Inc. ("Photon Control").

Intangible Assets

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


As of March 31, 2022:	Gross		Accumulated Impairment Charges			Accumulated Amortization			Foreign Currency Translation			Net
Completed technology	$	556	$	—		$	(251	)	$	—		$	305
Customer relationships		318		(2	)		(128	)		(1	)		187
Patents, trademarks, trade names and other		123		—			(54	)		—			69
	$	997	$	(2	)	$	(433	)	$	(1	)	$	561


As of December 31, 2021:	Gross		Accumulated Impairment Charges			Accumulated Amortization			Foreign Currency Translation			Net
Completed technology(1)	$	556	$	—		$	(242	)	$	—		$	314
Customer relationships(1)		318		(2	)		(124	)		—			192
Patents, trademarks, trade names and other(1)		123		—			(52	)		(1	)		70
	$	997	$	(2	)	$	(418	)	$	(1	)	$	576

(1)

During the twelve months ended December 31, 2021, the Company recorded $121 of separately identified intangible assets related to its acquisition of Photon Control, representing $110 in completed technology, $9 in customer relationships and $2 in patents, trademarks, trade names and other.

Aggregate amortization expense related to acquired intangible assets for the three months ended March 31, 2022 and 2021 was $15 and $12, respectively. Aggregate net amortization expense related to acquired intangible assets for future years is as follows:


Year	Amount
2022 (remaining)	$	45
2023		58
2024		57
2025		56
2026		53
2027		52
Thereafter		184

The table above excludes $56 of indefinite-lived trademarks and trade names that were not subject to amortization.