Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2023

Intangible Assets and Goodwill

Intangible Assets and Goodwill

4.     Intangible Assets and Goodwill

Intangible Assets

Intangible assets are stated at cost or acquisition-date fair value less accumulated amortization and consists of the following:

	September 30, 2023
	Gross Carrying		Accumulated		Intangible
	Amount (a)		Amortization		Asset, net
Customer relationships	$	507,675	$	(373,656)	$	134,019
Developed technology		88,553		(88,026)		527
Patent		15		(14)		1
Trade names (b)		8,400		(3,100)		5,300
Outsource contract costs		17,616		(16,131)		1,485
Internally developed software		55,107		(40,786)		14,321
Purchased software		26,749		(8,471)		18,278
Intangibles, net	$	704,115	$	(530,184)	$	173,931

	December 31, 2022
	Gross Carrying		Accumulated		Intangible
	Amount (a)		Amortization		Asset, net
Customer relationships	$	507,723	$	(351,240)	$	156,483
Developed technology		88,553		(88,000)		553
Patent		15		(6)		9
Trade names (b)		8,400		(3,100)		5,300
Outsource contract costs		17,184		(15,509)		1,675
Internally developed software		52,441		(35,095)		17,346
Purchased software		26,749		(7,133)		19,616
Intangibles, net	$	701,065	$	(500,083)	$	200,982

(a) Amounts include intangible assets acquired in business combinations and asset acquisitions.

(b) The carrying amount of trade names for 2023 and 2022 is net of accumulated impairment losses of $44.1 million. Carrying amount of $5.3 million as at September 30, 2023 represents indefinite-lived intangible assets.

Goodwill

The Company’s operating segments are significant strategic business units that align its products and services with how it manages its business, approaches the markets and interacts with customers. The Company is organized into three segments: ITPS, HS, and LLPS (See Note 13 – Segment and Geographic Area Information).

Goodwill by reporting segment consists of the following:

	Balances as at January 1, 2023 (a)			Additions		Deletions			Impairments		Currency Translation Adjustments		Balances as at September 30, 2023 (a)
ITPS	$	81,151	$	—	$	(16,500)	(b)	$	—	$	(40)	$	64,611
HS		86,786		—		—			—		—		86,786
LLPS		18,865		—		—			—		—		18,865
Total	$	186,802	$	—	$	(16,500)		$	—	$	(40)	$	170,262
	Balances as at January 1, 2022 (a)			Additions		Deletions			Impairments		Currency Translation Adjustments		Balances as at December 31, 2022 (a)
ITPS	$	252,672	$	—	$	—		$	(171,182)	$	(339)	$	81,151
HS		86,786		—		—			—		—		86,786
LLPS		18,865		—		—			—		—		18,865
Total	$	358,323	$	—	$	—		$	(171,182)	$	(339)	$	186,802

(a) The goodwill amount for all periods presented is net of accumulated impairment amounts. Accumulated impairment relating to ITPS was $487.7 million, $487.7 million and $316.5 million as at September 30, 2023, December 31, 2022 and December 31, 2021, respectively. Accumulated impairment relating to LLPS was $243.4 million as at September 30, 2023, December 31, 2022 and December 31, 2021, respectively.

(b) The deletion in goodwill is due to derecognition of allocated goodwill on sale of the high-speed scanner business in the second quarter of 2023. Refer to Note 1—General.