XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Goodwill Impairment and Intangible Assets, Net | 12 Months Ended
--- | ---
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill Impairment and Intangible Assets, Net | NOTE 8 – GOODWILL IMPAIRMENT AND INTANGIBLE ASSETS, NET Goodwill Impairment Goodwill was evaluated for potential impairment annually, as of the beginning of the fourth quarter, and whenever events or changes in circumstances indicated the carrying amount of goodwill may not be recoverable. The process of evaluating goodwill for potential impairment is subjective and requires significant estimates, assumptions and judgments particularly related to the identification of reporting units, the assignment of assets and liabilities to reporting units and estimating the fair value of each reporting unit. The Company concluded it operated in one reporting unit for all periods presented. During the third and fourth quarters of 2022, sufficient impairment indicators were identified by the Company that it was more-likely-than-not that goodwill was impaired, and a quantitative interim goodwill impairment test was performed in each of the reporting periods. These impairment indicators included a sustained decline in the Former Parent’s stock price during the third quarter of 2022 and a further significant decline in the trading price of Xperi’s common stock during the fourth quarter of 2022, along with continued decline in macroeconomic conditions. A fair value assessment was completed for the Product reporting unit using the market approach capitalization, and when compared to the carrying value of this reporting unit, goodwill was considered impaired. As a result, a goodwill impairment charge of $604.6 million was recognized for the year 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 Identified intangible assets consisted of the following (in thousands):
|  |  |  | December 31, 2023 |
|  | Average Life (Years) |  | Gross Amount |  |  | Accumulated Amortization |  |  | Net Carrying Value |
Finite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |
Acquired patents |  | 3-10 |  | $ | 17,281 |  |  | $ | (3,478 | ) |  | $ | 13,803 |
Existing technology / content database |  | 5-10 |  |  | 219,717 |  |  |  | (181,713 | ) |  |  | 38,004 |
Customer contracts and related relationships |  | 3-9 |  |  | 493,685 |  |  |  | (365,074 | ) |  |  | 128,611 |
Trademarks/trade name |  | 4-10 |  |  | 39,313 |  |  |  | (34,453 | ) |  |  | 4,860 |
Non-compete agreements |  | 1-2 |  |  | 3,101 |  |  |  | (2,884 | ) |  |  | 217 |
Total finite-lived intangible assets |  |  |  |  | 773,097 |  |  |  | (587,602 | ) |  |  | 185,495 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
TiVo tradename/trademarks |  | N/A |  |  | 21,400 |  |  |  | — |  |  |  | 21,400 |
Total intangible assets |  |  |  | $ | 794,497 |  |  | $ | (587,602 | ) |  | $ | 206,895 |
Total intangible assets excluded certain finite-lived intangible assets with a gross amount of $35.2 million, which were fully amortized and classified as held for sale as of December 31, 2023 in connection with the Divestiture (as described in Note 7).
|  |  |  | 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-compete 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 December 31, 2023, the estimated future amortization expense of finite-lived intangible assets was as follows (in thousands):
Year Ending December 31: |  | Amounts |
2024 |  | $ | 43,363 |
2025 |  |  | 34,816 |
2026 |  |  | 31,486 |
2027 |  |  | 30,643 |
2028 |  |  | 30,305 |
Thereafter |  |  | 14,882 |
Total amortization |  | $ | 185,495 |

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://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration