Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

13)	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 losses were as follows:

	2020								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 ⁽¹⁾		—		—			—			474.0			—			474.0
Impairment of goodwill ⁽²⁾		—		(1.1	)		(1.1	)		—			—			—
Foreign currency translation		9.0		—			9.0			(2.5	)		—			(2.5	)
Ending balance at December 31	$	1,211.8	$	(145.4	)	$	1,066.4		$	1,202.8		$	(144.3	)	$	1,058.5

⁽¹⁾	During the twelve months ended December 31, 2019, the Company recorded $474.0 of goodwill related to the ESI Merger.

⁽²⁾	^{During the twelve months ended December 31, 2020, the Company recorded $1.1 of goodwill impairment charges related to the pending closure of a facility in Europe.}

Intangible Assets

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

As of December 31, 2020	Gross		Accumulated Impairment Charges			Accumulated Amortization			Foreign Currency Translation			Net
Completed technology	$	446.4	$	(0.1	)	$	(209.8	)	$	(0.1	)	$	236.4
Customer relationships		308.2		(1.4	)		(104.8	)		1.7			203.7
Patents, trademarks, trade names and other		120.9		—			(48.6	)		(0.2	)		72.1
	$	875.5	$	(1.5	)	$	(363.2	)	$	1.4		$	512.2

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⁽¹⁾		120.9		—			(45.5	)		0.2			75.6
	$	875.5	$	(1.5	)	$	(308.0	)	$	(1.4	)	$	564.6

⁽¹⁾	During the twelve months ended December 31, 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.

Aggregate amortization expense related to acquired intangible assets for the years 2020, 2019 and 2018 was $55.2, $67.4 and $43.5, respectively. Aggregate net amortization expense related to acquired intangible assets for future years is:

Year	Amount
2021	$	48.2
2022		45.6
2023		45.2
2024		44.3
2025		43.3
Thereafter	$	229.7

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