Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

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. 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 or 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, 2023 were as follows:


	Gross Carrying Amount		Accumulated Impairment Loss			Net
Beginning balance, January 1	$	4,454	$	(146	)	$	4,308
Foreign currency translation		19		—			19
Ending balance, March 31	$	4,473	$	(146	)	$	4,327

Intangible Assets

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


As of March 31, 2023:	Gross		Accumulated Impairment Charges			Accumulated Amortization			Foreign Currency Translation		Net
Completed technology	$	1,208	$	—		$	(328	)	$	8	$	888
Customer relationships		2,072		(1	)		(227	)		22		1,866
Patents, trademarks, trade names and other		441		—			(90	)		3		354
	$	3,721	$	(1	)	$	(645	)	$	33	$	3,108

During the three months ended March 31, 2023, $57 of IPR&D, included within patents, trademarks, trade names and other, was reclassified into completed technology and $9 of IPR&D was written off to amortization expense as certain projects were cancelled.


As of December 31, 2022:	Gross		Accumulated Impairment Charges			Accumulated Amortization Charges			Foreign Currency Translation		Net
Completed technology	$	1,151	$	—		$	(303	)	$	4	$	852
Customer relationships		2,072		(1	)		(190	)		11		1,892
Patents, trademarks, trade names and other		498		—			(71	)		2		429
	$	3,721	$	(1	)	$	(564	)	$	17	$	3,173

Aggregate amortization expense related to acquired intangible assets for the three months ended March 31, 2023 and 2022 was $81 and $15, respectively. The increase in amortization of intangible assets was a result of increased amortization related to acquired intangible assets from the Atotech Acquisition. Aggregate net amortization expense related to acquired intangible assets for future years is as follows:


Year	Amount
2023 (remaining)	$	224
2024		289
2025		295
2026		293
2027		290
2028		290
Thereafter		1,247

The Company excluded from the above table intangible assets of $56 of indefinite-lived trademarks and trade names, and $124 of IPR&D, which were not subject to amortization.