GOODWILL AND OTHER INTANGIBLE ASSETS, NET

9 Months Ended

Sep. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Changes in the carrying amount of goodwill consisted of the following:


	Industrial Operations		Energy Operations		Manufacturing Operations		Total
	(In thousands)





Balance at December 31, 2024	$	7,541	$	1,449	$	20,349	$	29,339

Effect of foreign currency translation	—		—		185		185
Measurement period adjustments	—		—		(3,829)		(3,829)
Impairment losses	—		—		—		—
Balance at September 30, 2025	$	7,541	$	1,449	$	16,705	$	25,695

The ending balance of goodwill includes no accumulated impairment losses to date. Refer to Note 3 for additional information related to the Deflecto acquisition and measurement period adjustments recorded during the nine months ended September 30, 2025.

Other intangible assets, net consisted of the following:


	September 30, 2025
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Book Value
		(In thousands)
Patents:
Intellectual property operations	5 years	$	366,402	$	(347,429)	$	18,973
Industrial operations	7 years	3,400		(1,933)		1,467
Total patents		369,802		(349,362)		20,440
Customer relationships:
Industrial operations	7 years	5,300		(3,014)		2,286
Manufacturing operations	15 years	22,387		(1,384)		21,003
Total customer relationships		27,687		(4,398)		23,289
Trade name and trademarks:
Industrial operations	7 years	3,430		(1,950)		1,480
Manufacturing operations	10 years	398		(38)		360
Manufacturing operations	Indefinite	8,695		—		8,695
Total trade name and trademarks		12,523		(1,988)		10,535
Developed technology - manufacturing operations	10 years	1,000		(95)		905
Favorable leases - manufacturing operations	1.9 years	703		(414)		289
Total		$	411,715	$	(356,257)	$	55,458


	December 31, 2024
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Book Value
		(In thousands)
Patents:
Intellectual property operations	6 years	$	351,403	$	(332,211)	$	19,192
Industrial operations	7 years	3,400		(1,568)		1,832
Total patents		354,803		(333,779)		21,024
Customer relationships:
Industrial operations	7 years	5,300		(2,446)		2,854
Manufacturing operations	15 years	20,200		(269)		19,931
Total customer relationships		25,500		(2,715)		22,785
Trade name and trademarks:
Industrial operations	7 years	3,430		(1,583)		1,847
Manufacturing operations	10 years	400		(8)		392
Manufacturing operations	Indefinite	8,009		—		8,009
Total trade name and trademarks		11,839		(1,591)		10,248
Developed technology - manufacturing operations	10 years	1,000		(20)		980
Favorable leases - manufacturing operations	1.9 years	704		(312)		392
Total		$	393,846	$	(338,417)	$	55,429

Total other intangible asset amortization expense in the consolidated statements of operations and comprehensive income (loss) was $6.1 million and $5.1 million for the three months ended September 30, 2025 and 2024, respectively, and $17.8 million and $12.7 million for the nine months ended September 30, 2025 and 2024, respectively. The Company did not record charges related to impairment of other intangible assets for the nine months ended September 30, 2025 and 2024. There was no accelerated amortization of other intangible assets for the nine months ended September 30, 2025 and 2024. Intellectual Property Operations amortization of patents was $5.3 million and $4.7 million for the three months ended September 30, 2025 and 2024, respectively, and $15.2 million and $11.4 million for the nine months ended September 30, 2025 and 2024, respectively. Intellectual Property Operations amortization of patents is expensed in cost of revenues. Industrial Operations amortization of intangible assets was $432,000 and $433,000 for the three months ended September 30, 2025 and 2024, respectively, and $1.3 million for each of the nine months ended September 30, 2025 and 2024. Manufacturing Operations amortization of intangible assets was $423,000 and $1.3 million for the three and nine months ended September 30, 2025. Industrial Operations and Manufacturing Operations amortization of intangible assets is expensed in general and administrative expenses.

The following table presents the scheduled annual aggregate amortization expense (in thousands):


Years Ending December 31,
Remainder of 2025	$	6,160
2026	10,937
2027	8,478
2028	4,211
2029	1,628
2030	1,628
Thereafter	13,721
Total	$	46,763

During the year ended December 31, 2022, ARG entered into an agreement granting ARG the exclusive option to acquire all rights to license and enforce a patent portfolio and all future patents and patent applications, and incurred $15.0 million of certain patent and patent rights costs, which was fully paid in 2023. The patent costs are included in prepaid expenses and other current assets in the consolidated balance sheet as of December 31, 2024. During the nine months ended September 30, 2025, ARG exercised the option to acquire all rights to license and enforce the portfolio and capitalized $15.0 million in patent and patent rights costs.