XML 39 R22.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets | Intangible Assets The carrying values of intangible assets were as follows:
| December 31, 2023 |  | December 31, 2022
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
| (In thousands) |  | (In thousands)
Goodwill | $ | 907,331 |  |  | $ | — |  |  | $ | 907,331 |  |  | $ | 862,253 |  |  | $ | — |  |  | $ | 862,253 |
Definite-lived intangible assets subject to amortization: |  |  |  |  |  |  |  |  |  |  |
Developed technology | $ | 300,240 |  |  | $ | (219,210) |  |  | $ | 81,030 |  |  | $ | 273,524 |  |  | $ | (190,808) |  |  | $ | 82,716 |
Customer relationships | 296,616 |  |  | (145,739) |  |  | 150,877 |  |  | 253,275 |  |  | (129,730) |  |  | 123,545 |
Trademarks | 43,862 |  |  | (35,089) |  |  | 8,773 |  |  | 40,951 |  |  | (30,077) |  |  | 10,874 |
Backlog | 14,847 |  |  | (13,483) |  |  | 1,364 |  |  | 13,554 |  |  | (11,192) |  |  | 2,362 |
In-service research and development | 5,000 |  |  | (5,000) |  |  | — |  |  | 5,507 |  |  | (5,342) |  |  | 165 |
Non-compete agreements | 810 |  |  | (710) |  |  | 100 |  |  | 780 |  |  | (612) |  |  | 168 |
Total intangible assets subject to amortization | $ | 661,375 |  |  | $ | (419,231) |  |  | $ | 242,144 |  |  | $ | 587,591 |  |  | $ | (367,761) |  |  | $ | 219,830 |
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 | $ | 688,375 |  |  | $ | (419,231) |  |  | $ | 269,144 |  |  | $ | 614,591 |  |  | $ | (367,761) |  |  | $ | 246,830 |
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, 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 |
Acquisitions | 32,243 |  |  | 5,816 |  |  | 38,059 |
Translation impact | 1,447 |  |  | 5,572 |  |  | 7,019 |
Balance at December 31, 2023 | $ | 511,524 |  |  | $ | 395,807 |  |  | $ | 907,331 |
The carrying amount of a certain indefinite-lived trademark in our Enterprise Solutions segment was $27.0 million as of December 31, 2023 and 2022. 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 2023 goodwill impairment test, we performed a quantitative assessment for three of our reporting units and determined the estimated fair values by calculating the present value of estimated future cash flows using Level 3 inputs. We determined that the fair values for the reporting units were in excess of their respective carrying values. We performed a qualitative assessment for the remaining three 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 2023. We did not recognize any goodwill impairment from continuing operations in 2022 or 2021 other than a $1.7 million impairment in 2021 in connection with the sale of an oil and gas business in Brazil. See Note 5. For our quantitative impairment test in 2023, the excess of the fair value over the carrying value for the reporting units ranged from 30% to 106%. 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 ranged from 11.9% to 13.8%, the 2024 to 2033 compounded annual revenue growth rate ranged from 4.2% to 6.3%, and the revenue growth rate beyond 2033 ranged from 2.0% to 3.0%. 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 2023, 2022, or 2021. Impairment of Discontinued Operations Prior to the Tripwire divestiture in 2022, we recognized a goodwill impairment charge of $131.2 million during 2021. See Note 5. Amortization Expense We recognized amortization expense in income from continuing operations of $48.1 million, $41.7 million, and $32.2 million in 2023, 2022, and 2021, respectively. We expect to recognize annual amortization expense of $44.7 million in 2024, $39.5 million in 2025, $27.6 million in 2026, $26.4 million in 2027, and $21.5 million in 2028 related to our intangible assets balance as of December 31, 2023.

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 and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration