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Goodwill And Intangible Assets, Net | 6 Months Ended
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Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill And Intangible Assets, Net | NOTE 8 – GOODWILL AND INTANGIBLE ASSETS, NET Goodwill impairment During the three months ended September 30, 2022, indicators of potential impairment for the Former Parent’s Product reporting unit were identified such that management concluded it was more-likely-than-not that goodwill was impaired and a quantitative interim goodwill impairment assessment should be performed as of September 30, 2022. Indicators of potential impairment included a sustained decline in the Former Parent’s stock price during the second half of the third quarter of 2022 reflective of rising interest rates and continued decline in macroeconomic conditions. The Company proceeded to perform a fair value analysis of the Product reporting unit using the market capitalization approach. Under this approach, management estimated the fair value of the Product reporting unit as of September 30, 2022 using quoted market prices of Xperi’s common stock, over its first ten trading days following the Separation, and a control premium representing the synergies a market participant would achieve upon obtaining control of Xperi. As a result of the fair value analysis, the Company recognized a goodwill impairment charge of $354.0 million during the three months ended September 30, 2022. Leveraging the aforementioned fair value assessment, the Company also completed its annual goodwill impairment test as of October 1, 2022 using the financial information as of September 30, 2022. During the three months ended December 31, 2022, sufficient indicators of potential impairment were identified such that management concluded it was more-likely-than-not that goodwill was impaired and a quantitative interim goodwill impairment test should be performed as of December 31, 2022. Indicators of potential impairment included a significant, sustained decline in the trading price of Xperi’s common stock during the fourth quarter of 2022. The Company proceeded to perform a fair value analysis of the Product reporting unit, the Company's only reporting unit, using the market capitalization approach. Under this approach, management estimated the fair value as of December 31, 2022 using quoted market prices of Xperi’s common stock as of December 30, 2022, the last trading date of 2022, and a control premium representing the synergies a market participant would achieve upon obtaining control of Xperi. As a result of the fair value analysis, a goodwill impairment charge of $250.6 million was recognized during the three months ended December 31, 2022. As a result of this impairment charge, the Company’s goodwill balance was completely written off as of December 31, 2022. Identified intangible assets consisted of the following (in thousands):
|  | June 30, 2023 |
|  | Average Life (Years) |  | Gross Amount |  |  | Accumulated Amortization |  |  | Net Carrying Value |
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Acquired patents |  | 3-10 |  | $ | 22,189 |  |  | $ | (7,281 | ) |  | $ | 14,908 |
Existing technology / content database |  | 5-10 |  |  | 241,077 |  |  |  | (197,040 | ) |  |  | 44,037 |
Customer contracts and related relationships |  | 3-9 |  |  | 502,391 |  |  |  | (355,523 | ) |  |  | 146,868 |
Trademarks/trade name |  | 4-10 |  |  | 39,613 |  |  |  | (32,243 | ) |  |  | 7,370 |
Non-competition agreements |  | 1-2 |  |  | 3,101 |  |  |  | (2,666 | ) |  |  | 435 |
Total finite-lived intangible assets |  |  |  |  | 808,371 |  |  |  | (594,753 | ) |  |  | 213,618 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
TiVo tradename/trademarks |  | N/A |  |  | 21,400 |  |  |  | — |  |  |  | 21,400 |
Total intangible assets |  |  |  | $ | 829,771 |  |  | $ | (594,753 | ) |  | $ | 235,018 |
|  | December 31, 2022 |
|  | Average Life (Years) |  | Gross Amount |  |  | Accumulated Amortization |  |  | Net Carrying Value |
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Acquired patents |  | 3-10 |  | $ | 22,189 |  |  | $ | (6,175 | ) |  | $ | 16,014 |
Existing technology / content database |  | 5-10 |  |  | 240,894 |  |  |  | (190,671 | ) |  |  | 50,223 |
Customer contracts and related relationships |  | 3-9 |  |  | 502,188 |  |  |  | (335,981 | ) |  |  | 166,207 |
Trademarks/trade name |  | 4-10 |  |  | 39,613 |  |  |  | (29,733 | ) |  |  | 9,880 |
Non-competition agreements |  | 1-2 |  |  | 3,101 |  |  |  | (2,449 | ) |  |  | 652 |
Total finite-lived intangible assets |  |  |  |  | 807,985 |  |  |  | (565,009 | ) |  |  | 242,976 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
TiVo tradename/trademarks |  | N/A |  |  | 21,400 |  |  |  | — |  |  |  | 21,400 |
Total intangible assets |  |  |  | $ | 829,385 |  |  | $ | (565,009 | ) |  | $ | 264,376 |
As of June 30, 2023, the estimated future amortization expense of total finite-lived intangible assets was as follows (in thousands):
Year Ending December 31: |  |  |
2023 (remaining 6 months) |  | $ | 28,143 |
2024 |  |  | 43,388 |
2025 |  |  | 34,817 |
2026 |  |  | 31,493 |
2027 |  |  | 30,650 |
Thereafter |  |  | 45,127 |
Total future amortization |  | $ | 213,618 |

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