Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the cost of an acquisition in excess of the fair values assigned to identifiable net assets acquired. The Company recorded Goodwill of $307.4 million as part of the HomeLink^®acquisition. The carrying value of Goodwill as of December 31, 2017 and September 30, 2018 was $307.4 million.

In addition to annual impairment testing, which is performed as of the first day of the fourth quarter, the Company continuously monitors for events and circumstances that could negatively impact the key assumptions in determining fair value thus resulting in the need for interim impairment testing, including long-term revenue growth projections, profitability, discount rates, recent market valuations from transactions by comparable companies, volatility in the Company's market capitalization, and general industry, market and macroeconomic conditions. No such events or circumstances in the most recently completed quarter indicated the need for interim impairment testing.

The patents and intangible assets and related change in carrying values are set forth in the tables below:

As of September 30, 2018:


Other Intangible Assets	Gross		Accumulated Amortization		Net		Assumed Useful Life
Gentex Patents	$	36,152,904	$	(20,336,961)	$	15,815,943	various

Other Intangible Assets
HomeLink^®Trade Names and Trademarks	$	52,000,000	$	—	$	52,000,000	Indefinite
HomeLink® Technology	180,000,000		(75,000,000)		105,000,000		12 years
Existing Customer Platforms	43,000,000		(21,500,000)		21,500,000		10 years
Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite
Total Other Intangible Assets	$	371,000,000	$	(96,500,000)	$	274,500,000

Total Patents & Other Intangible Assets	$	407,152,904	$	(116,836,961)	$	290,315,943

As of December 31, 2017:


Other Intangible Assets	Gross		Accumulated Amortization		Net		Assumed Useful Life
Gentex Patents	$	34,847,029	$	(18,943,554)	$	15,903,475	various

HomeLink® Trade Names and Trademarks	$	52,000,000	$	—	$	52,000,000	Indefinite
HomeLink® Technology	180,000,000		(63,750,000)		116,250,000		12 years
Existing Customer Platforms	43,000,000		(18,275,000)		24,725,000		10 years
Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite
Total other identifiable intangible assets	$	371,000,000	$	(82,025,000)	$	288,975,000

Total Patents & Other Intangible Assets	$	405,847,029	$	(100,968,554)	$	304,878,475

Amortization expense on patents and intangible assets was approximately $5.6 million and $16.9 million during the three and nine month periods ended September 30, 2018, respectively, compared to approximately $5.6 million and $16.9 million for the same periods ended September 30, 2017, respectively.

Excluding the impact of any future acquisitions, the Company continues to estimate amortization expense for each of the years ended December 31, 2018, 2019, 2020, 2021, and 2022 to be approximately $22 million annually.