Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2024

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:

	June 30, 2024
	Gross Carrying		Accumulated		Intangible
	Amount (a)		Amortization		Asset, net
Customer relationships	$	507,679	$	(393,065)	$	114,614
Developed technology		88,553		(88,382)		171
Trade names (b)		5,300		—		5,300
Outsource contract costs		18,272		(16,813)		1,459
Internally developed software		57,670		(47,791)		9,879
Purchased software		26,749		(9,808)		16,941
Intangibles, net	$	704,223	$	(555,859)	$	148,364

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

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

(b) The carrying amount of trade names for 2024 and 2023 is net of accumulated impairment losses of $44.1 million. Carrying amount of $5.3 million as at June 30, 2024 represents indefinite-lived intangible assets.

Aggregate amortization expense related to intangible assets was $9.9 million and $19.0 million for the three and six months ended June 30, 2024, respectively. Aggregate amortization expense related to intangible assets was $10.0 million and $21.0 million for the three and six months ended June 30, 2023, respectively.

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

	Estimated
	Amortization
	Expense
Remainder of 2024	$	15,632
2025		25,927
2026		21,226
2027		17,430
2028		13,778
Thereafter		49,071
Total	$	143,064

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, 2024 (a)			Additions		Deletions			Impairments		Currency Translation Adjustments		Balances as at June 30, 2024 (a)
ITPS	$	64,801	$	—	$	—		$	—	$	(98)	$	64,703
HS		86,786		—		—			—		—		86,786
LLPS		18,865		—		—			—		—		18,865
Total	$	170,452	$	—	$	—		$	—	$	(98)	$	170,354
	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

(a) The goodwill amount for all periods presented is net of accumulated impairment amounts. Accumulated impairment relating to ITPS was $487.7 million as at June 30, 2024 and December 31, 2023. Accumulated impairment relating to LLPS was $243.4 million as at June 30, 2024 and December 31, 2023.

(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.