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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2021
Goodwill and Other Intangible Assets [Abstract] |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets Goodwill We assess the impairment of long‑lived and identifiable intangibles assets and goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. With respect to goodwill, we test for impairment on an annual basis or in interim periods if an event occurs or circumstances change that may indicate the fair value of a reporting unit is below its carrying amount. We completed our annual impairment test of goodwill as of December 31, 2021. When performing our evaluation of goodwill for impairment, if we conclude qualitatively that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then a quantitative impairment test would not be required. If we are unable to reach this conclusion, then we would perform a goodwill quantitative impairment test. In performing the quantitative test, the fair value of the reporting unit is compared to its carrying amount. A charge for impairment is recognized by the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. As of December 31, 2021, we performed a qualitative assessment of the likelihood of a goodwill impairment for both the Engine Management and Temperature Control reporting units. Based upon our qualitative assessment, we determined that it was not more likely than not that the fair value of the each of the Engine Management and Temperature Control reporting units was less than their respective carrying amounts. As such, we concluded that the quantitative impairment test would not be required, and that there would be no required goodwill impairment charge as of December 31, 2021 at each of the Engine Management and Temperature Control reporting units. While we concluded that we did not have a goodwill impairment charge as of December 31, 2021, and we do not believe that future impairments are probable, we will need to maintain the current ongoing performance levels at each of the Engine Management and Temperature Control reporting units in future periods to sustain their goodwill carrying values. Changes in the carrying values of goodwill by operating segment during the years ended December 31, 2021 and 2020 are as follows (in thousands):
|  | Engine Management |  |  | Temperature Control |  |  | Total |
Balance as of December 31, 2019: |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 102,020 |  |  | $ | 14,270 |  |  | $ | 116,290 |
Accumulated impairment losses |  |  | (38,488 | ) |  |  | — |  |  |  | (38,488 | )
|  | $ | 63,532 |  |  | $ | 14,270 |  |  | $ | 77,802 |
Activity in 2020 |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange rate change |  |  | 35 |  |  |  | — |  |  |  | 35 |
Balance as of December 31, 2020: |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 102,055 |  |  |  | 14,270 |  |  |  | 116,325 |
Accumulated impairment losses |  |  | (38,488 | ) |  |  | — |  |  |  | (38,488 | )
|  | $ | 63,567 |  |  | $ | 14,270 |  |  | $ | 77,837 |
Activity in 2021 |  |  |  |  |  |  |  |  |  |  |  |
Acquisition of Trombetta |  |  | 49,250 |  |  |  | — |  |  |  | 49,250 |
Acquisition of Stabil |  |  | 4,827 |  |  |  | — |  |  |  | 4,827 |
Foreign currency exchange rate change |  |  | (262 | ) |  |  | — |  |  |  | (262 | )
Balance as of December 31, 2021: |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 155,870 |  |  |  | 14,270 |  |  |  | 170,140 |
Accumulated impairment losses |  |  | (38,488 | ) |  |  | — |  |  |  | (38,488 | )
|  | $ | 117,382 |  |  | $ | 14,270 |  |  | $ | 131,652 |
Acquired Intangible Assets Acquired identifiable intangible assets as of December 31, 2021 and 2020 consist of:
|  | December 31, |
|  | 2021 |  |  | 2020 |
|  | (In thousands) |
Customer relationships |  | $ | 157,020 |  |  | $ | 111,701 |
Patents, developed technology and intellectual property |  |  | 14,123 |  |  |  | 723 |
Trademarks and trade names |  |  | 8,880 |  |  |  | 6,980 |
Non-compete agreements |  |  | 3,280 |  |  |  | 3,272 |
Supply agreements |  |  | 800 |  |  |  | 800 |
Leaseholds |  |  | 160 |  |  |  | 160 |
Total acquired intangible assets |  |  | 184,263 |  |  |  | 123,636 |
Less accumulated amortization (1) |  |  | (78,932 | ) |  |  | (70,221 | )
Net acquired intangible assets |  | $ | 105,331 |  |  | $ | 53,415 |
| (1) | Applies to all intangible assets, except for a related trademark/trade name totaling $2.6 million, which has an indefinite useful life and, as such, is not being amortized.
In December 2020, a large retail customer informed us of its decision to pursue a private brand strategy for its engine management product line. As a result of this development, revenues sold under the BWD trademark were significantly reduced. In connection with the decision, in 2020, we recorded an impairment charge of $2.6 million to write-off the BWD intangible asset trademark. Total amortization expense for acquired intangible assets was $8.7 million for the year ended December 31, 2021, $8.2 million for the year ended December 31, 2020, and $8 million for the year ended December 31, 2019. Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be $8.5 million for 2022, $8.4 million in 2023, $8.2 million in 2024, $8.2 million in 2025 and $69.4 million in the aggregate for the years 2026 through 2041. For information related to identified intangible assets acquired in the Stabil, Trombetta, and Soot Sensor acquisitions, see Note 2, “Business Acquisitions and Investments,” of the notes to our consolidated financial statements. Other Intangible Assets Other intangible assets include computer software. Computer software as of December 31, 2021 and 2020 totaled $17.4 million and $17 million, respectively. Total accumulated computer software amortization as of December 31, 2021 and 2020 was $16.5 million and $16.4 million, respectively. Computer software is amortized over its estimated useful life of 3 to 10 years. Amortization expense for computer software was $0.3 million, $0.3 million and $0.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. Fully amortized computer software, no longer in use, of $0.2 million was written-off during each of the years ended December 31, 2021 and 2020.

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- 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 http://asc.fasb.org/topic&trid=2144416 + Details
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