XML 48 R17.htm IDEA: XBRL DOCUMENT v3.25.0.1
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
We completed our annual impairment test of goodwill and indefinite-lived intangible assets as of December 31, 2024. As of December 31, 2024, we qualitatively assessed whether it was more likely than not that the fair value of any of our reporting units was less than carrying value, and concluded that the quantitative impairment test would not be required, and no goodwill impairment charge was required as of December 31, 2024. While we concluded that we did not have a goodwill impairment charge as of December 31, 2024, and we do not believe that future impairments are probable, we will need to maintain the current ongoing performance levels at each of our reporting units in future periods to sustain their goodwill and indefinite-lived intangible assets carrying values.
In connection with our operating segment reorganization on January 1, 2023, we reassessed our reporting units and reallocated goodwill from the reporting units that existed prior to the change to the new reporting units, using a relative fair value approach similar to that used when a portion of a reporting unit is to be disposed of. We performed goodwill impairment tests as of January 1, 2023 on both the reporting units in place prior to the change and the new reporting units, and concluded that the estimated fair values of each of the reporting units exceeded their respective carrying amounts and, therefore, no impairment charge was necessary.
Goodwill
Changes in the carrying values of goodwill by reporting unit during the years ended December 31, 2024 and 2023 are as follows (in thousands):
 Vehicle
Control
Temperature
Control
Engineered
Solutions		Nissens AutomotiveTotal
Balance as of December 31, 2022:
Goodwill$129,008 $11,474 $30,093 $— $170,575 
Accumulated impairment losses(38,488)— — — (38,488)
90,520 11,474 30,093 — 132,087 
Activity in 2023
Step acquisition of Gwo Yng— 1,214 994 — 2,208 
Foreign currency translation286 42 106 — 434 
Balance as of December 31, 2023:    
Goodwill129,294 12,730 31,193 — 173,217 
Accumulated impairment losses(38,488)— — — (38,488)
 $90,806 $12,730 $31,193 $— $134,729 
Activity in 2024
Acquisition of Nissens Automotive— — — 112,194 112,194 
Foreign currency translation(384)(62)(144)(4,915)(5,505)
Balance as of December 31, 2024:
Goodwill$128,910 $12,668 $31,049 $107,279 $279,906 
Accumulated impairment losses(38,488)— — — (38,488)
$90,422 $12,668 $31,049 $107,279 $241,418 
Acquired Intangible Assets
Acquired identifiable intangible assets as of December 31, 2024 and 2023 consist of (in thousands):
December 31,
20242023
Customer relationships303,547 159,641 
Patents, developed technology and intellectual property14,123 14,123 
Trademarks and trade names82,220 8,880 
Non-compete agreements3,308 3,295 
Supply agreements800 800 
Leaseholds160 160 
Total acquired intangible assets$404,158 $186,899 
Less accumulated amortization(a)(106,304)(95,681)
Net acquired intangible assets$297,854 $91,218 
(a) Applies to all intangible assets, except for trademarks/trade names totaling $74.9 million, which have indefinite useful lives and, as such, are not being amortized.
Total amortization expense for acquired intangible assets was $10 million for the year ended December 31, 2024, $8.5 million for the year ended December 31, 2023, and $8.6 million for the year ended December 31, 2022.
The following table summarizes the amortization expense on our intangible assets and the estimated amortization expenses in future periods based on the current estimated useful lives assigned to our intangible assets (in thousands):
Amortization Expense(a)
202517,500 
202617,500 
202717,500 
202817,500 
2029-2041153,000 
(a) Estimated amortization expenses based on the current estimated useful lives assigned to our intangible assets
For information related to identified intangible assets acquired in the Nissens acquisition, 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, 2024 and 2023 totaled $21.4 million and $19.1 million, respectively. Total accumulated computer software amortization as of December 31, 2024 and 2023 was $18.3 million and $18.0 million, respectively. Computer software is amortized over its estimated useful life of 3 to 10 years. Amortization expense for computer software was $0.8 million, $0.8 million and $0.7 million for the years ended December 31, 2024, 2023 and 2022, respectively.