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Intangible Assets | 12 Months Ended
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Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets | Intangible Assets The carrying values of intangible assets were as follows:
| December 31, 2022 |  | December 31, 2021
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
| (In thousands) |  | (In thousands)
Goodwill | $ | 862,253 |  |  | $ | — |  |  | $ | 862,253 |  |  | $ | 821,448 |  |  | $ | — |  |  | $ | 821,448 |
Definite-lived intangible assets subject to amortization: |  |  |  |  |  |  |  |  |  |  |
Developed technology | $ | 273,524 |  |  | $ | (190,808) |  |  | $ | 82,716 |  |  | $ | 241,499 |  |  | $ | (171,455) |  |  | $ | 70,044 |
Customer relationships | 253,275 |  |  | (129,730) |  |  | 123,545 |  |  | 241,395 |  |  | (117,064) |  |  | 124,331 |
Trademarks | 40,951 |  |  | (30,077) |  |  | 10,874 |  |  | 39,618 |  |  | (26,271) |  |  | 13,347 |
Backlog | 13,554 |  |  | (11,192) |  |  | 2,362 |  |  | 11,580 |  |  | (8,827) |  |  | 2,753 |
In-service research and development | 5,507 |  |  | (5,342) |  |  | 165 |  |  | 5,551 |  |  | (5,206) |  |  | 345 |
Non-compete agreements | 780 |  |  | (612) |  |  | 168 |  |  | 618 |  |  | (283) |  |  | 335 |
Total intangible assets subject to amortization | $ | 587,591 |  |  | $ | (367,761) |  |  | $ | 219,830 |  |  | $ | 540,261 |  |  | $ | (329,106) |  |  | $ | 211,155 |
Indefinite-lived intangible assets not subject to amortization: |  |  |  |  |  |  |  |  |  |  |
Trademarks | $ | 27,000 |  |  | $ | — |  |  | $ | 27,000 |  |  | $ | 27,000 |  |  | $ | — |  |  | $ | 27,000 |
Total intangible assets not subject to amortization | $ | 27,000 |  |  | $ | — |  |  | $ | 27,000 |  |  | $ | 27,000 |  |  | $ | — |  |  | $ | 27,000 |
Intangible assets | $ | 614,591 |  |  | $ | (367,761) |  |  | $ | 246,830 |  |  | $ | 567,261 |  |  | $ | (329,106) |  |  | $ | 238,155 |
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 Automation Solutions |  | Consolidated
| (In thousands)
Balance at December 31, 2020 | $ | 474,747 |  |  | $ | 314,988 |  |  | $ | 789,735 |
Acquisitions | — |  |  | 41,749 |  |  | 41,749 |
Impairment | — |  |  | (1,664) |  |  | (1,664) |
Translation impact | (1,506) |  |  | (6,866) |  |  | (8,372) |
Balance at December 31, 2021 | $ | 473,241 |  |  | $ | 348,207 |  |  | $ | 821,448 |
Acquisitions | 6,528 |  |  | 44,068 |  |  | 50,596 |
Translation impact | (1,935) |  |  | (7,856) |  |  | (9,791) |
Balance at December 31, 2022 | $ | 477,834 |  |  | $ | 384,419 |  |  | $ | 862,253 |
The changes in the carrying amount of indefinite-lived trademarks are as follows:
| Enterprise Solutions |  | Industrial Automation Solutions |  | Consolidated
| (In thousands)
Balance at December 31, 2020 | $ | 27,000 |  |  | $ | 4,063 |  |  | $ | 31,063 |
Reclassify to definite-lived | — |  |  | (4,063) |  |  | (4,063) |
Balance at December 31, 2021 and 2022 | $ | 27,000 |  |  | $ | — |  |  | $ | 27,000 |
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 2022 goodwill impairment test, we performed a quantitative assessment for one of our reporting units and determined the estimated fair value by calculating the present value of its estimated future cash flows using Level 3 inputs. We determined that the fair value for the reporting unit was in excess of its carrying value. We performed a qualitative assessment for the remaining five reporting units, and determined that it was more likely than not that the fair value of each reporting unit was greater than its respective carrying value. Therefore, we did not record any goodwill impairment in 2022. We did not recognize any goodwill impairment from continuing operations in 2021 or 2020 other than a $1.7 million impairment in 2021 in connection with the sale of our oil and gas business in Brazil. See Note 5. For our quantitative impairment test in 2022, the excess of the fair value over the carrying value for the reporting unit was 48%. The assumptions used to estimate fair value 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 assessment, the discount rate was 13.1%, the 2023 to 2032 compounded annual revenue growth rate was 4.9%, and the revenue growth rate beyond 2032 was 2.5%. By their nature, these assumptions involve risks and uncertainties. There is inherent risk associated with using an income approach to estimate fair values. If actual results are significantly different from our estimates or assumptions, we may have to recognize impairment charges that could be material. We tested our indefinite-lived intangible asset, a trademark, for impairment during the fourth quarter using a quantitative assessment. We determined the fair value of the 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 indefinite-lived intangible asset impairment charges in 2022, 2021, or 2020. Disposal Group Impairment Prior to the Tripwire divestiture in 2022, we recognized a goodwill impairment charge of $131.2 million during 2021. We also wrote down the carrying value of the Grass Valley disposal group and recognized asset impairments totaling $113.0 million during 2020. See Note 5. Amortization Expense We recognized amortization expense in income from continuing operations of $41.7 million, $32.2 million, and $29.9 million in 2022, 2021, and 2020, respectively. We expect to recognize annual amortization expense of $38.0 million in 2023, $34.2 million in 2024, $28.7 million in 2025, $18.2 million in 2026, and $16.3 million in 2027 related to our intangible assets balance as of December 31, 2022. The weighted-average amortization period for our customer relationships, developed technology, trademarks, in-service research and development, non-compete agreements, and backlog is 19.0 years, 8.0 years, 6.6 years, 5.0 years, 3.5 years, and 0.9 years, respectively. At the beginning of 2021, we re-evaluated the useful life of a certain trademark in our Industrial Automation Solutions segment and concluded that an indefinite life for this trademark was no longer appropriate. We estimated a useful life of five years for the trademark and will re-evaluate this estimate if and when our expected use of the trademark changes. We began amortizing the trademark in 2021, which resulted in amortization expense of $0.8 million for each of the years ended December 31, 2022 and 2021. As of December 31, 2022 and 2021, the net book value of this trademark was $2.5 million and $3.3 million, respectively.

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