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GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended
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Sep. 30, 2024
Finite-Lived Intangible Assets, Net [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | 7. GOODWILL AND INTANGIBLE ASSETS: The Company monitors the recoverability of goodwill annually or whenever events or changes in circumstances indicate the carrying value may not be recoverable. Purchased intangible assets subject to amortization consist of acquired technology and other intangible assets that include trade names, customer relationships and developed intellectual property (IP) processes. Acquired Technology Acquired technology primarily consists of acquired license rights for patents and know-how obtained from Merck KGaA, BASF and Fujifilm. These intangible assets consist of the following (in thousands):
|  | September 30, 2024 |  |  | December 31, 2023 |
Merck KGaA |  | $ | 66,012 |  |  | $ | 66,012 |
BASF |  |  | 95,989 |  |  |  | 95,989 |
Fujifilm |  |  | 109,462 |  |  |  | 109,462 |
Other |  |  | 5,712 |  |  |  | 5,712 |
|  |  | 277,175 |  |  |  | 277,175 |
Less: Accumulated amortization |  |  | (199,428 | ) |  |  | (186,850 | )
Acquired technology, net |  | $ | 77,747 |  |  | $ | 90,325 |
Amortization expense related to acquired technology was $4.2 million for both three months ended September 30, 2024 and 2023, and $12.6 million and $10.4 million for the nine months ended September 30, 2024 and 2023, respectively. Amortization expense is included in the amortization of acquired technology and other intangible assets expense line item on the Consolidated Statements of Income and is expected to be $4.2 million for the three months ending December 31, 2024, $16.8 million in the year ending December 31, 2025, $12.0 million in the year ending December 31, 2026, $7.2 million in each of the years ending December 31, 2027 and 2028, and $30.3 million thereafter. Merck KGaA Patent Acquisition In April 2023, UDC Ireland entered into a Patent Sale and License Agreement with Merck KGaA. Under this agreement, Merck KGaA sold to UDC Ireland all of its rights, title and interest to over 550 of its owned and licensed OLED-related patents and patent applications in exchange for a cash payment of $66.0 million. The Patent Sale and License Agreement contains customary representations, warranties and covenants of the parties. UDC Ireland recorded the payment of $66.0 million as acquired technology, which is being amortized over a period of 10 years. BASF Patent Acquisition On June 28, 2016, UDC Ireland entered into and consummated an IP Transfer Agreement with BASF. Under the IP Transfer Agreement, BASF sold to UDC Ireland all of its rights, title and interest to certain of its owned and co-owned intellectual property rights relating to the composition, development, manufacture and use of OLED materials, including OLED lighting and display stack technology, as well as certain tangible assets. The intellectual property includes know-how and more than 500 issued and pending patents in the area of phosphorescent materials and technologies. These assets were acquired in exchange for a cash payment of €86.8 million ($95.8 million). In addition, UDC Ireland also took on certain rights and obligations under three joint research and development agreements to which BASF was a party. The IP Transfer Agreement also contains customary representations, warranties and covenants of the parties. UDC Ireland recorded the payment of €86.8 million ($95.8 million) and acquisition costs incurred of $217,000 as acquired technology, which is being amortized over a period of 10 years. Other Intangible Assets As a result of the Adesis acquisition in June 2016, the Company recorded $16.8 million of other intangible assets, including $10.5 million assigned to customer relationships with a weighted average life of 11.5 years, $4.8 million to internally developed IP, processes and recipes with a weighted average life of 15 years, and $1.5 million to trade name and trademarks with a weighted average life of 10 years. At September 30, 2024, these other intangible assets consist of the following (in thousands):
|  | September 30, 2024 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Customer relationships |  | $ | 10,520 |  |  | $ | (7,487 | ) |  | $ | 3,033 |
Developed IP, processes and recipes |  |  | 4,820 |  |  |  | (2,628 | ) |  |  | 2,192 |
Trade name/Trademarks |  |  | 1,500 |  |  |  | (1,231 | ) |  |  | 269 |
Other |  |  | 448 |  |  |  | (138 | ) |  |  | 310 |
Total identifiable other intangible assets |  | $ | 17,288 |  |  | $ | (11,484 | ) |  | $ | 5,804 |
Amortization expense related to other intangible assets was $359,000 for both three months ended September 30, 2024 and 2023, and $1.1 million for both nine months ended September 30, 2024 and 2023. Am ortization expense is included in the amortization of acquired technology and other intangible assets expense line item on the Consolidated Statements of Income and is expected to be $359,000 for the three months ending December 31, 2024, $1.4 million for each of the years ending December 31, 2025 and 2026, $1.3 million for the year ending December 31, 2027, $422,000 for the year ending December 31, 2028, and $963,000 in total thereafter.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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