Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

10)	Goodwill and Intangible Assets

Goodwill

The Company’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the cost of the acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. The Company assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process.

Goodwill and purchased intangible assets with indefinite useful lives are not amortized but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment. The Company regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results.

The changes in the carrying amount of goodwill and accumulated impairment loss during the nine months ended September 30, 2020 and year ended December 31, 2019 were as follows:

	Nine Months Ended September 30, 2020							Twelve Months Ended December 31, 2019
	Gross Carrying Amount		Accumulated Impairment Loss			Net		Gross Carrying Amount			Accumulated Impairment Loss			Net
Beginning balance at January 1	$	1,202.8	$	(144.3	)	$	1,058.5	$	731.3		$	(144.3	)	$	587.0
Acquired goodwill		—		—			—		474.0			—			474.0
Foreign currency translation		3.6		—			3.6		(2.5	)		—			(2.5	)
Ending balance at September 30, 2020 and December 31, 2019	$	1,206.4	$	(144.3	)	$	1,062.1	$	1,202.8		$	(144.3	)	$	1,058.5

Intangible Assets

Components of the Company’s intangible assets are comprised of the following:

As of September 30, 2020:	Gross		Accumulated Impairment Charges			Accumulated Amortization			Foreign Currency Translation			Net
Completed technology	$	446.4	$	(0.1	)	$	(203.2	)	$	(0.1	)	$	243.0
Customer relationships		308.2		(1.4	)		(99.6	)		0.2			207.4
Patents, trademarks, trade names and other		120.9		—			(47.8	)		(0.2	)		72.9
	$	875.5	$	(1.5	)	$	(350.6	)	$	(0.1	)	$	523.3

As of December 31, 2019:	Gross		Accumulated Impairment Charges			Accumulated Amortization			Foreign Currency Translation			Net
Completed technology⁽¹⁾	$	446.4	$	(0.1	)	$	(178.3	)	$	(0.2	)	$	267.8
Customer relationships⁽¹⁾		308.2		(1.4	)		(84.2	)		(1.4	)		221.2
Patents, trademarks, trade names and other⁽²⁾		120.9		—			(45.5	)		0.2			75.6
	$	875.5	$	(1.5	)	$	(308.0	)	$	(1.4	)	$	564.6

⁽¹⁾

^{During 2019, the Company recorded $316.2 of separately identified intangible assets related to the ESI Merger, of which $274.0 was completed technology, $25.4 was customer relationships and $16.8 was trademarks, trade names and backlog.}

⁽²⁾

^{During 2019, the Company reclassified $6.4 of gross favorable lease assets and $3.4 of related accumulated amortization from patents, trademarks, trade names and other to the right-of-use asset line in the balance sheet.}

Aggregate amortization expense related to acquired intangibles for the nine months ended September 30, 2020 and September 30, 2019 were $42.6 and $50.3, respectively. Aggregate net amortization expense related to acquired intangible assets for future years is as follows:

Year	Amount
2020 (remaining)	$	13.2
2021		47.9
2022		45.4
2023		45.0
2024		44.1
2025		43.2
Thereafter		228.6

The Company excluded $55.9 of indefinite-lived trademarks and trade names that were not subject to amortization from the table above.