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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2024
Goodwill and Other Intangible Assets [Abstract] |
Goodwill and Other Intangible Assets | Note 19 – Goodwill and Other Intangible Assets When required to perform quantitative goodwill impairment assessments, the Company estimates the fair value of each of its business segments, which represent its reporting units for goodwill impairment testing purposes, using mostly Level 3 inputs. Assessments are performed using a weighting of the income and market approaches to determine fair value. The Company used a discounted cash flow (“DCF”) method, using unobservable inputs, as its income approach. The Company used comparable company market multiples for its market approach. The resulting estimates of fair value from the income approach and the market approach are then weighted equally in determining the overall estimated fair value of each reporting unit. The determination of the fair value of the reporting units and the allocation of that value to individual assets and liabilities within those reporting units requires the Company to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the selection of appropriate peer group companies; control premiums appropriate for acquisitions in the industries in which the Company competes; the discount rate; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization (components of earnings before interest, taxes, depreciation, amortization, "EBITDA"); and capital expenditures. Due to the inherent uncertainty involved in making these estimates, actual financial results could differ from those estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on results of the assessment. During the third fiscal quarter of 2024, the Company identified the decrease in its share price in combination with the increase in the book value of its assets as a result of its acquisition and capital spending activities as potential indicators of impairment requiring an interim goodwill impairment test. The interim goodwill impairment test was performed as of the end of the third fiscal quarter of 2024. Based on the evaluation, the estimated fair value of each reporting unit was determined to exceed its carrying value, although the MOSFETs reporting unit’s fair value exceeded its carrying value by less than 10%. No goodwill impairment charges were recognized in the third fiscal quarter of 2024 as a result of the goodwill impairment test. During the fourth fiscal quarter of 2024, the Company identified the further decrease in its share price in combination with the further increase in the book value of its assets as a result of its capital spending activities as the primary potential indicators of impairment requiring an interim goodwill impairment test of its MOSFETs reporting unit. An interim goodwill impairment test was performed as of December 31, 2024. As a result of the assessment, it was determined that the fair value of the MOSFETs reporting unit was less than its carrying value. Accordingly, a goodwill impairment charge of $66,487 was recorded. The goodwill impairment charge is noncash in nature and does not affect the Company’s liquidity, cash flows from operating activities, or debt covenants, and will not have a material impact on future operations. Prior to completing the interim assessment of goodwill for impairment, the Company performed a recoverability test of certain depreciable and amortizable long-lived assets within the MOSFETs reporting unit. There was no impairment identified for the depreciable and amortizable long-lived assets tested for recoverability. The changes in the carrying amount of goodwill by segment for the years ended December 31, 2024 and 2023 were as follows:
|  | MOSFETs |  |  | Optoelectronic Components |  |  | Resistors |  |  | Inductors |  |  | Capacitors |  |  | Total |
Balance at December 31, 2022 |  | $ | 36,885 |  |  | $ | 96,849 |  |  | $ | 41,883 |  |  | $ | 25,815 |  |  | $ | - |  |  | $ | 201,432 |
Centerline acquisition |  |  | - |  |  |  | - |  |  |  | 2,213 |  |  |  | - |  |  |  | - |  |  |  | 2,213 |
Purchase price allocation adjustment |  |  | (2,639 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (2,639 | )
Exchange rate effects |  |  | - |  |  |  | - |  |  |  | 410 |  |  |  | - |  |  |  | - |  |  |  | 410 |
Balance at December 31, 2023 |  | $ | 34,246 |  |  | $ | 96,849 |  |  | $ | 44,506 |  |  | $ | 25,815 |  |  | $ | - |  |  | $ | 201,416 |
Newport acquisition |  |  | 32,241 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 32,241 |
Ametherm acquisition |  |  | - |  |  |  | - |  |  |  | 11,685 |  |  |  | - |  |  |  | - |  |  |  | 11,685 |
Birkelbach acquisition |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 777 |  |  |  | 777 |
Impairment of goodwill |  |  | (66,487 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (66,487 | )
Exchange rate effects |  |  | - |  |  |  | - |  |  |  | (627 | ) |  |  | - |  |  |  | - |  |  |  | (627 | )
Balance at December 31, 2024 |  | $ | - |  |  | $ | 96,849 |  |  | $ | 55,564 |  |  | $ | 25,815 |  |  | $ | 777 |  |  | $ | 179,005 |
Note 19 – Goodwill and Other Intangible Assets (continued) Other intangible assets are as follows:
|  | December 31, 2024 |  |  | December 31, 2023 |
Intangible assets subject to amortization: |  |  |  |  |  |
Patents and acquired technology |  | $ | 23,160 |  |  | $ | 26,053 |
Capitalized software |  |  | 62,158 |  |  |  | 62,360 |
Customer relationships |  |  | 103,813 |  |  |  | 83,895 |
Tradenames |  |  | 23,216 |  |  |  | 22,300 |
Other |  |  | - |  |  |  | 400 |
|  |  | 212,347 |  |  |  | 195,008 |
Accumulated amortization: |  |  |  |  |  |  |  |
Patents and acquired technology |  |  | (7,316 | ) |  |  | (14,931 | )
Capitalized software |  |  | (55,476 | ) |  |  | (54,203 | )
Customer relationships |  |  | (45,053 | ) |  |  | (38,664 | )
Tradenames |  |  | (17,279 | ) |  |  | (14,610 | )
Other |  |  | - |  |  |  | (267 | )
|  |  | (125,124 | ) |  |  | (122,675 | )
Net intangible assets subject to amortization |  | $ | 87,223 |  |  | $ | 72,333 |
Amortization expense (excluding capitalized software) was $11,684, $9,916, and $8,127, for the years ended December 31, 2024, 2023, and 2022, respectively. Estimated annual amortization expense of intangible assets on the balance sheet at December 31, 2024 for each of the next five years is as follows:
2025 |  | $ | 13,074 |
2026 |  |  | 12,267 |
2027 |  |  | 9,319 |
2028 |  |  | 8,346 |
2029 |  |  | 8,121 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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