XML 33 R20.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Goodwill and Intangible Assets | 6 Months Ended
--- | ---
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Changes in the carrying value of goodwill by reporting unit were as follows:
|  | Total |  | DWS |  | CA&I |  | ECS |  | Other
Balance at December 31, 2023 |  | $ | 287.4 |  |  | $ | 140.8 |  |  | $ | 38.0 |  |  | $ | 98.3 |  |  | $ | 10.3 |
Translation adjustments |  | (0.2) |  |  | (0.2) |  |  | — |  |  | — |  |  | — |
Balance at June 30, 2024 |  | $ | 287.2 |  |  | $ | 140.6 |  |  | $ | 38.0 |  |  | $ | 98.3 |  |  | $ | 10.3 |
At June 30, 2024, the amount of goodwill allocated to reporting units with negative net assets within Other was $10.3 million. The company reviews goodwill for impairment annually, as well as whenever there are events or changes in circumstances (triggering events), which indicate that the carrying amount may not be recoverable. Based on the annual impairment analysis performed during the fourth quarter of 2023, the reporting units that were closest to impairment were the Cloud, Applications & Infrastructure Solutions (CA&I) and Digital Workplace Solutions (DWS) reporting units with fair value in excess of book value, including goodwill, of 10% and 16%, respectively. All other reporting units had a fair value substantially in excess of book value. The company continuously monitors its revenue, gross profit and operating profit growth and evaluates other relevant events and circumstances including changes to U.S. treasury rates and equity risk premiums, tax rates, recent market valuations from transactions by comparable companies, volatility in the company’s market capitalization, and general industry, market and macro-economic conditions, that could unfavorably impact the recoverability of the goodwill carrying value. As of June 30, 2024, the company believes that there are no indicators of goodwill impairment as no triggering events were identified during the three and six months ended June 30, 2024. It is possible that future changes in such circumstances or in the inputs and assumptions used in estimating the fair value of the reporting units could require the company to record a non-cash impairment charge. Intangible Assets, Net Intangible assets, net at June 30, 2024, consists of the following:
|  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Technology (i) |  | $ | 10.0 |  |  | $ | 9.6 |  |  | $ | 0.4 |
Customer relationships (ii) |  | 54.2 |  |  | 17.0 |  |  | 37.2 |
Marketing (ii) |  | 1.3 |  |  | 0.8 |  |  | 0.5 |
Total |  | $ | 65.5 |  |  | $ | 27.4 |  |  | $ | 38.1 |
(i) Amortization expense is included within cost of revenue - technology in the consolidated statements of income (loss). (ii) Amortization expense is included within selling, general and administrative expense in the consolidated statements of income (loss). For the three months ended June 30, 2024 and 2023, amortization expense was $2.2 million and $2.4 million, respectively. For the six months ended June 30, 2024 and 2023, amortization expense was $4.6 million and $4.9 million, respectively. The future amortization relating to acquired intangible assets at June 30, 2024, was estimated as follows:
|  | Future Amortization Expense
Remainder of 2024 |  | $ | 2.6 |
2025 |  | 4.3 |
2026 |  | 4.0 |
2027 |  | 4.0 |
2028 |  | 4.0 |
Thereafter |  | 19.2 |
Total |  | $ | 38.1 |

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://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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration