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Intangible Assets | 12 Months Ended
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Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets | Intangible Assets The carrying values of intangible assets were as follows:
| December 31, 2020 |  | December 31, 2019
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
| (In thousands) |  | (In thousands)
Goodwill | $ | 1,251,938 |  |  | $ | — |  |  | $ | 1,251,938 |  |  | $ | 1,243,669 |  |  | $ | — |  |  | $ | 1,243,669 |
Definite-lived intangible assets subject to amortization: |  |  |  |  |  |  |  |  |  |  |
Developed technology | $ | 428,187 |  |  | $ | (369,849) |  |  | $ | 58,338 |  |  | $ | 413,310 |  |  | $ | (331,696) |  |  | $ | 81,614 |
Customer relationships | 295,382 |  |  | (128,796) |  |  | 166,586 |  |  | 297,595 |  |  | (110,732) |  |  | 186,863 |
Trademarks | 65,861 |  |  | (36,539) |  |  | 29,322 |  |  | 56,393 |  |  | (30,213) |  |  | 26,180 |
In-service research and development | 11,536 |  |  | (9,774) |  |  | 1,762 |  |  | 10,702 |  |  | (7,160) |  |  | 3,542 |
Backlog | 11,421 |  |  | (11,421) |  |  | — |  |  | 11,335 |  |  | (10,935) |  |  | 400 |
Total intangible assets subject to amortization | 812,387 |  |  | (556,379) |  |  | 256,008 |  |  | 789,335 |  |  | (490,736) |  |  | 298,599 |
Indefinite-lived intangible assets not subject to amortization: |  |  |  |  |  |  |  |  |  |  |
Trademarks | 31,063 |  |  | — |  |  | 31,063 |  |  | 40,106 |  |  | — |  |  | 40,106 |
In-process research and development | — |  |  | — |  |  | — |  |  | 800 |  |  | — |  |  | 800 |
Total intangible assets not subject to amortization | 31,063 |  |  | — |  |  | 31,063 |  |  | 40,906 |  |  | — |  |  | 40,906 |
Intangible assets | $ | 843,450 |  |  | $ | (556,379) |  |  | $ | 287,071 |  |  | $ | 830,241 |  |  | $ | (490,736) |  |  | $ | 339,505 |
Segment Allocation of Goodwill and Trademarks The changes in the carrying amount of goodwill assigned to reporting units in our reportable segments are as follows:
| Enterprise Solutions |  | Industrial Solutions |  | Consolidated
| (In thousands)
Balance at December 31, 2018 | $ | 432,082 |  |  | $ | 774,795 |  |  | $ | 1,206,877 |
Acquisitions and purchase accounting adjustments | 38,209 |  |  | — |  |  | 38,209 |
Translation impact | (260) |  |  | (1,157) |  |  | (1,417) |
Balance at December 31, 2019 | $ | 470,031 |  |  | $ | 773,638 |  |  | $ | 1,243,669 |
Acquisitions and purchase accounting adjustments | 2,420 |  |  | — |  |  | 2,420 |
Translation impact | 2,296 |  |  | 3,553 |  |  | 5,849 |
Balance at December 31, 2020 | $ | 474,747 |  |  | $ | 777,191 |  |  | $ | 1,251,938 |
The changes in the carrying amount of indefinite-lived trademarks are as follows:
| Enterprise Solutions |  | Industrial Solutions |  | Consolidated
| (In thousands)
Balance at December 31, 2018 | $ | 27,000 |  |  | $ | 13,270 |  |  | $ | 40,270 |
Translation impact | — |  |  | (164) |  |  | (164) |
Balance at December 31, 2019 | $ | 27,000 |  |  | $ | 13,106 |  |  | $ | 40,106 |
Reclassify to definite-lived | — |  |  | (9,043) |  |  | (9,043) |
Balance at December 31, 2020 | $ | 27,000 |  |  | $ | 4,063 |  |  | $ | 31,063 |
Annual Impairment Test The annual measurement date for our goodwill and indefinite-lived intangible assets impairment test is our fiscal November month-end. For our 2020 goodwill impairment test, we performed a quantitative assessment for all ten of our reporting units and determined the estimated fair values of our reporting units by calculating the present values of their estimated future cash flows using Level 3 inputs. We did not perform a qualitative assessment over our reporting units. We determined that the fair values of the reporting units were in excess of the carrying values; therefore, we did not record any goodwill impairment for the ten reporting units. We also did not recognize any goodwill impairment from continuing operations in 2019 or 2018 based upon the results of our annual goodwill impairment testing. For our annual impairment test in 2020, the excess of the fair values over the carrying values of our ten reporting units tested under a quantitative income approach ranged from 4% - 345%. The assumptions used to estimate fair values were based on the past performance of the reporting unit as well as the projections incorporated in our strategic plan. Significant assumptions included sales growth, profitability, and related cash flows, along with cash flows associated with taxes and capital spending. The discount rate used to estimate fair value was risk adjusted in consideration of the economic conditions in effect at the time of the impairment test. We also considered assumptions that market participants may use. In our quantitative assessments, the discount rates ranged from 10.0% to 12.2%, the 2021 to 2030 compounded annual revenue growth rates ranged from 2.5% to 5.8%, and the revenue growth rates beyond 2030 ranged from 2.0% to 3.0%. By their nature, these assumptions involve risks and uncertainties. Furthermore, uncertainties associated with current market conditions increase the inherent risk associated with using an income approach to estimate fair values. While we have adjusted our key assumptions to reflect the current economic conditions, we have also assumed that economic conditions will improve. If current conditions persist and actual results are different from our estimates or assumptions, we may have to recognize an impairment charge that could be material. We test our indefinite-lived intangible assets, which consist pri marily of trademarks, for impairment on an annual basis during the fourth quarter. The accounting guidance related to impairment testing for such intangible assets allows for the performance of an optional qualitative assessment, similar to that described above for goodwill. We did not perform any qualitative assessments as part of our indefinite-lived intangible asset impairment testing for 2020. Rather, we performed a quantitative assessment for each of our indefinite-lived trademarks in 2020. Under the quantitative assessments, we determined the fair value of each trademark using a relief from royalty methodology and compared the fair value to the carrying value. Significant assumptions to determine fair value included sales growth, royalty rates, and discount rates. We did not recognize any trademark impairment charges from continuing operations in 2020, 2019, or 2018. Disposal Group Impairment During the fourth quarter of 2019, we committed to a plan to sell Grass Valley, and at such time, met all of the criteria to classify the assets and liabilities of this business as held for sale. Furthermore, we determined a divestiture of Grass Valley represents a strategic shift that is expected to have a major impact on our operations and financial results. As a result, the Grass Valley disposal group, previously included in our Enterprise Solutions segment, was reported within discontinued operations. We also ceased depreciating and amortizing the assets of the disposal group once they met the held for sale criteria in the fourth quarter of 2019. During 2019, we wrote down the carrying value of Grass Valley and recognized asset impairments totaling $521.4 million, which consisted of impairments to goodwill, customer relationships, and trademarks of $326.1 million, $14.4 million, and $1.6 million, respectively, as well as an impairment of the disposal group of $179.3 million ($180.4 million translated at year-end exchange rates). During 2020, we wrote down the carrying value of Grass Valley and recognized asset impairments totaling $113.0 million. We determined the estimated fair values of the assets and of the reporting unit by calculating the present values of their estimated future cash flows, which was based in part on the assumed proceeds from a divestiture of Grass Valley. Amortization Expense We recognized amortization expense in income from continuing operations of $66.2 million, $74.6 million, and $75.1 million in 2020, 2019, and 2018, respectively. We expect to recognize annual amortization expense of $35.6 million in 2021, $32.9 million in 2022, $31.2 million in 2023, $29.0 million in 2024, and $24.7 million in 2025 related to our intangible assets balance as of December 31, 2020. The weighted-average amortization period for our customer relationships, trademarks, developed technology, and in-service research and development is 18.2 years, 8.3 years, 6.8 years, and 5.0 years, respectively. At the beginning of 2020, we re-evaluated the useful lives of certain trademarks in our Industrial Solutions segment and concluded that indefinite lives for these trademarks was no longer appropriate. We have estimated a useful life of five years and will re-evaluate this estimate if and when our expected use of the trademarks changes. We began amortizing the trademarks in the first quarter of 2020, which resulted in amortization expense of $1.8 million for the year ended December 31, 2020. As of December 31, 2020, the net book value of these trademarks totaled $7.8 million.

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