XML 27 R13.htm IDEA: XBRL DOCUMENT v3.22.0.1
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill represents the excess of the purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. The Company evaluates goodwill for impairment annually on October 1 of each year and upon the occurrence of triggering events or substantive changes in circumstances that could indicate a potential impairment by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that the fair value of the net assets is below their carrying amounts. The Company has determined that it has one reporting unit for which discrete financial information is available and results are regularly reviewed by management.
The Company’s long-lived asset groups, which includes intangible assets, property and equipment and operating lease right-of-use assets net of operating lease liabilities, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset (or asset group), a significant change in the extent or manner in which an asset (or asset group) is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable.
No impairment charges relating to goodwill were recorded in the years ended December 31, 2021, 2020 and 2019.
The following table presents the balances of goodwill as of 2021 and 2020 (in thousands):
Goodwill
Balance as of January 1, 2020$124,835 
Foreign currency remeasurement226 
Balance as of December 31, 2020$125,061 
Acquisition1,662 
Foreign currency remeasurement(72)
Balance as of December 31, 2021$126,651 
Intangible assets acquired in a business combination are recognized separately from goodwill and are initially recognized at their fair value at the acquisition date. Intangible assets acquired include intellectual property (product design), customer, licensor and supplier relationships, trade names, and noncompetition agreements. These are definite-lived assets and are amortized on a straight-line basis over their useful lives. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. As of December 31, 2021, there were also $0.1 million in indefinite-lived assets not subject to amortization but tested for impairment. No impairment charges relating to intangible assets were recorded in the years ended December 31, 2021, 2020 and 2019.
The following table provides the details of identified intangible assets, by major class, for the periods indicated (in thousands):
December 31, 2021December 31, 2020
Estimated
Useful Life
(Years)
Gross
Carrying
Amount
Accumulated
Amortization
Intangible
Assets,
Net
Gross
Carrying
Amount
Accumulated
Amortization
Intangible
Assets, Net
Intangible assets subject
  to amortization:
Intellectual property
3 - 20
$115,331 $(36,060)$79,271 $115,131 $(30,008)$85,123 
Trade names
10 - 20
83,358 (25,985)57,373 83,359 (21,717)61,642 
Customer relationships
3 - 20
71,699 (24,912)46,787 71,736 (20,301)51,435 
Licensor relationships
10 - 20
11,276 (5,186)6,090 11,301 (4,068)7,233 
Supplier relationships2322 (322)— 325 (325)— 
Noncompetition agreements3290 (278)12 290 (182)108 
Total$282,276 $(92,743)$189,533 $282,142 $(76,601)$205,541 
Amortization expense for the years ended December 31, 2021, 2020 and 2019 was $16.2 million, $16.0 million, and $15.9 million, respectively. The future five-year amortization of intangibles subject to amortization at December 31, 2021 was as follows (in thousands):
Amortization
2022$15,107 
202314,893 
202414,873 
202514,873 
202614,815 
Thereafter114,972 
Total$189,533