Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

At December 31, 2021 goodwill related to the Former Parent’s acquisition of the Company was $69.7 million, net of accumulated impairment of $51.9 million.

As a result of the STI Acquisition, the Company recorded $343.4 million of goodwill and began reporting two segments, Array Legacy Operations and the newly acquired STI Operations.

The following table presents change in goodwill balances by reportable segment (in thousands):

	Array Legacy Operations		STI Operations		Total
Beginning balance as of December 31, 2021	$	69,727	$	—	$	69,727
Acquisition of STI	—		343,369		343,369
Foreign currency translation	—		3,088		3,088
Ending balance as of December 31, 2022	$	69,727	$	346,457	$	416,184

At March 31, 2022, the Company determined that the decrease in its stock price from December 31, 2021 and the continuing negative impact of the price of raw materials to the gross margin of the Array Legacy Operations reporting unit during the quarter were events indicating that the fair value of the Array Legacy Operations reporting unit may be less than its carrying amount. Based on the Company’s quantitative goodwill impairment analysis of the Array Legacy Operations reporting unit at March 31, 2022, the fair value exceeded the carrying value and accordingly, no impairment was recorded.

The Company completed its annual goodwill impairment test, utilizing a qualitative impairment analysis, and concluded goodwill was not impaired as of December 31, 2022.

Other Intangible Assets

Other intangible assets consisted of the following (in thousands, except for useful lives):

		December 31,
	Estimated Useful Life (Years)	2022		2021
Amortizable:
Costs:
Developed technology	14	$	203,800	$	203,800
Customer relationship	10	321,935		89,500
Backlog	1	51,015		—
Trade name	20	25,682		—
Total amortizable intangibles		602,432		293,300
Accumulated amortization:
Developed technology		94,347		79,790
Customer relationship		81,268		49,057
Backlog		49,507		—
Trade name		1,246		—
Total accumulated amortization		226,368		128,847
Total amortizable intangibles, net		376,064		164,453
Non-amortizable costs:
Trade name		10,300		10,300
Total other intangible assets, net		$	386,364	$	174,753

Amortization expense related to intangible assets was $98.2 million, $23.5 million and $25.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.

The following table presents estimated future annual amortization expense (in thousands):

	Amount
2023	$	49,733
2024	47,923
2025	47,923
2026	43,616
2027	38,973
Thereafter	147,896
	$	376,064