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