XML 134 R23.htm IDEA: XBRL DOCUMENT
v3.22.4

Intangible Assets and Goodwill | 12 Months Ended
--- | ---
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets The cost and accumulated amortization of intangible assets subject to amortization as of December 31, 2022 and 2021, is as follows:
|  | 2022 |  | 2021
(Thousands) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net
Customer relationships |  | $ | 110,347 |  |  | $ | (28,950) |  |  | $ | 81,397 |  |  | $ | 111,220 |  |  | $ | (22,777) |  |  | $ | 88,443 |
Technology |  | 44,886 |  |  | (10,420) |  |  | 34,466 |  |  | 45,014 |  |  | (6,917) |  |  | 38,097 |
Licenses and other |  | 34,300 |  |  | (10,562) |  |  | 23,738 |  |  | 34,468 |  |  | (7,879) |  |  | 26,589 |
Total |  | $ | 189,533 |  |  | $ | (49,932) |  |  | $ | 139,601 |  |  | $ | 190,702 |  |  | $ | (37,573) |  |  | $ | 153,129 |
During 2021, the Company acquired $50.2 million in customer relationships with a useful life of 13 years and $35.3 million in technology with a useful life of 13 years, as well as a $22.3 million trade name with a useful life of 15 years related to the HCS-Electronic Materials acquisition. During 2020, the Company accelerated amortization on $26.2 million of intangible assets for its LAC business that was shut down on December 31, 2020. These assets were fully amortized as of December 31, 2020 and fully written off in 2021 with no impact to the Consolidated Statements of Income in 2021. Amortization expense for 2022, 2021, and 2020 was $12.4 million, $6.0 million, and $2.4 million, respectively. Estimated amortization e xpense for each of the five succeeding years is as follows:
|  | Amortization
(Thousands) |  | Expense
2023 |  | 12,473 |
2024 |  | 12,473 |
2025 |  | 11,851 |
2026 |  | 10,626 |
2027 |  | 10,471 |
Intangible assets also includes deferred costs relating to the Company's revolving credit and consignments lines of $3.6 million and $3.6 million at December 31, 2022 and 2021, respectively. Goodwill In 2021, the Company acquired HCS-Electronic Materials for a total purchase price of $398.9 million, and recorded goodwill of $181.3 million. Goodwill of $157.0 million and $24.3 million associated with the HCS-Electronic Materials acquisition was allocated to the Electronic Materials and Performance Materials segments, respectively. The balance of goodwill at December 31, 2022 and 2021 was $319.5 million and $318.6 million, respectively. A summary of changes in goodwill by reportable segment is as follows:
(Thousands) |  | Performance Materials |  | Electronic Materials |  | Precision Optics |  | Total
Balance at December 31, 2020 |  | $ | 1,899 |  |  | $ | 50,527 |  |  | $ | 92,490 |  |  | $ | 144,916 |
Acquisition |  | 23,904 |  |  | 154,277 |  |  | — |  |  | 178,181 |
Impairment charge |  | — |  |  | — |  |  | — |  |  | — |
Other |  | — |  |  | (284) |  |  | (4,193) |  |  | (4,477) |
Balance at December 31, 2021 |  | $ | 25,803 |  |  | $ | 204,520 |  |  | $ | 88,297 |  |  | $ | 318,620 |
Acquisition |  |  |  |  |  | — |  |  | — |
Impairment charge |  | — |  |  | — |  |  | — |  |  | — |
Other |  | 354 |  |  | 2,150 |  |  | (1,626) |  |  | 878 |
Balance at December 31, 2022 |  | $ | 26,157 |  |  | 206,670 |  |  | $ | 86,671 |  |  | $ | 319,498 |
Due to recent acquisitions, the Company elected to perform a quantitative annual impairment assessment of its reporting units' goodwill as of October 1, 2022 and determined that the estimated fair values for each of its reporting units exceeded their carrying values, therefore no impairment charges were necessary. The estimated fair value of the Company's Precision Optics reporting unit exceeded the carrying value by less than 10%. Management believes the future sales growth and EBITDA margins in the long range plan, terminal growth rate and the discount rate used in the valuations requires significant use of judgment. If any of our reporting units do not meet our long range plan estimates or our discount rate increase significantly, we could be required to perform an interim goodwill impairment analysis or recognize charges in future periods. Any impairment charges that the Company may take in the future could be material to its consolidated results of operations and financial condition. The assumptions used for the reporting units with fair values exceeding carrying values of less than 10% are more sensitive to future performance and will be monitored accordingly. The results of the Company's 2022 and 2021 annual goodwill impairment assessments indicated that no goodwill impairment existed. The Company's accumulated goodwill impairment losses were $20.6 million as of December 31, 2022, 2021 and 2020. Accumulated impairment losses were from the closure of the LAC reporting unit which was closed as of December 31, 2020.

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 -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration