Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2023

Intangible Assets and Goodwill

Intangible Assets and Goodwill

9. Intangible Assets and Goodwill

Intangibles

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

	Weighted Average	December 31, 2023
	Remaining Useful Life	Gross Carrying		Accumulated		Intangible
	(in Years)	Amount (a)		Amortization		Asset, net
Customer relationships	8.4	$	507,930	$	(380,580)	$	127,350
Developed technology	1.2		88,554		(88,085)		469
Patent	0.2		15		(14)		1
Trade names (b)	Indefinite-lived		5,300		—		5,300
Outsource contract costs	2.5		17,734		(16,334)		1,400
Internally developed software	2.6		56,066		(43,499)		12,567
Purchased software	10.0		26,749		(8,916)		17,833
Intangibles, net		$	702,348	$	(537,428)	$	164,920

	Weighted Average	December 31, 2022
	Remaining Useful Life	Gross Carrying		Accumulated		Intangible
	(in Years)	Amount (a)		Amortization		Asset, net
Customer relationships	9.0	$	507,723	$	(351,240)	$	156,483
Developed technology	2.1		88,553		(88,000)		553
Patent	1.2		15		(6)		9
Trade names (b)	Indefinite-lived		8,400		(3,100)		5,300
Outsource contract costs	3.0		17,184		(15,509)		1,675
Internally developed software	2.9		52,441		(35,095)		17,346
Purchased software	11.0		26,749		(7,133)		19,616
Intangibles, net		$	701,065	$	(500,083)	$	200,982

(a) Amounts include intangibles 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 December 31, 2023 represents indefinite-lived intangible asset.

Aggregate amortization expense related to intangible assets was $40.5 million and $47.3 million for the years ended December 31, 2023 and 2022, respectively.

Estimated intangibles amortization expense for the next five years and thereafter consists of the following:

	Estimated
	Amortization
	Expense
2024	$	33,031
2025		25,443
2026		21,001
2027		17,259
2028		13,686
Thereafter		49,200
	$	159,620

Goodwill

Goodwill by reporting segment consists of the following:

	Balances as at January 1, 2023 (a)			Additions		Deletions			Impairments		Currency Translation Adjustments		Balances as at December 31, 2023 (a)
ITPS	$	81,151	$	—	$	(16,500)	(b)	$	—	$	150	$	64,801
HS		86,786		—		—			—		—		86,786
LLPS		18,865		—		—			—		—		18,865
Total	$	186,802	$	—	$	(16,500)		$	—	$	150	$	170,452
	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 is $487.7 million, $487.7 million and $316.5 million as at December 31, 2023, December 31, 2022 and January 1, 2022, respectively. Accumulated impairment relating to LLPS was $243.4 million as at December 31, 2023, December 31, 2022 and January 1, 2022.

(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 3— Sale of Non-Core Assets and Merger Agreement.

The Company tests for goodwill impairment at the reporting unit level on October 1 of each year and between annual tests if a triggering event indicates the possibility of an impairment. The Company monitors changing business conditions as well as industry and economic factors, among others, for events which could trigger the need for an interim impairment analysis.

In connection with the completion of the annual impairment test as of October 1, 2023, the Company recorded no impairment charge to goodwill and trade names. During 2022, as a result of two interim impairment assessments in the third and fourth quarters of 2022, impairment charges totaling $171.2 million, including taxes were recorded to goodwill for the year ended December 31, 2022.

The impairment charges are included within impairment of goodwill and other intangible assets in the consolidated statements of operations.