XML 42 R11.htm IDEA: XBRL DOCUMENT
v3.20.1

Goodwill and Intangible Assets | 3 Months Ended
--- | ---
Mar. 28, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill | Goodwill and Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. Goodwill of companies acquired, allocated to the company’s business segments, is as follows:
|  | Global Components |  | Global ECS |  | Total
Balance as of December 31, 2019 (a) |  | $ | 883,496 |  |  | $ | 1,177,826 |  |  | $ | 2,061,322 |
Foreign currency translation adjustment |  | (2,418 | ) |  | (14,006 | ) |  | (16,424 | )
Balance as of March 28, 2020 (a) |  | $ | 881,078 |  |  | $ | 1,163,820 |  |  | $ | 2,044,898 |
(a) | The total carrying value of goodwill as of March 28, 2020 and December 31, 2019 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment.
During the first quarter of 2020, as a result of significant declines in macroeconomic conditions and equity valuations, and the implementation of regulatory restrictions brought forth by the COVID-19 pandemic, and due to historically low head-room, the company determined that it was more likely than not that an impairment may exist within the Americas components and eInfochips reporting units. The company performed a quantitative goodwill impairment test for these reporting units and determined goodwill was not impaired. The fair value of the Americas components and eInfochips reporting units within the global components business segment exceeded their carrying values by approximately 4% and 2%, respectively. The company estimated the fair value of these reporting units using the income approach. For the purposes of the income approach, fair value was determined based on the present value of estimated future cash flows, discounted at an appropriate risk adjusted rate. The fair value conclusions as of March 28, 2020 for the Americas components and eInfochips reporting units are highly sensitive to changes in the assumptions used in the income approach which include forecasted revenues, gross profit margins, operating income margins, working capital cash flow, forecasted capital expenditures, perpetual growth rates, and long-term discount rates, among others, all of which require significant judgments by management. The company has used recent historical performance, current forecasted financial information, and broad-based industry and economic statistics as a basis to estimate the key assumptions utilized in the discounted cash flow model. These key assumptions are inherently uncertain and require a high degree of estimation and judgment and are subject to change based on future changes, industry and global economic and geo-political conditions, and the timing and success of the implementation of current strategic initiatives. The impact of the COVID-19 pandemic on estimated future cash flows is highly uncertain and will largely depend on the outcome of future events, which could result in a goodwill impairment going forward. The impacts of COVID-19 were considered in the impairment analysis through the use of probability weighted cash flow scenarios and an increase in the discount rates. Intangible assets, net, are comprised of the following as of March 28, 2020:
|  | Weighted-Average Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net
Customer relationships |  | 11 years |  | $ | 351,092 |  |  | $ | (153,741 | ) |  | $ | 197,351 |
Amortizable trade name |  | 8 years |  | 76,407 |  |  | (12,803 | ) |  | 63,604 |
|  |  |  | $ | 427,499 |  |  | $ | (166,544 | ) |  | $ | 260,955 |
Intangible assets, net, are comprised of the following as of December 31, 2019:
|  | Weighted-Average Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net
Customer relationships |  | 12 years |  | $ | 354,305 |  |  | $ | (148,632 | ) |  | $ | 205,673 |
Amortizable trade name |  | 8 years |  | 76,407 |  |  | (10,177 | ) |  | 66,230 |
|  |  |  | $ | 430,712 |  |  | $ | (158,809 | ) |  | $ | 271,903 |
During the first quarter of 2020 and 2019, the company recorded amortization expense related to identifiable intangible assets of $9,955 and $11,930, respectively.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2144439 + Details
Name: | us-gaap_GoodwillDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration