Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Changes in the carrying amount of goodwill by operating segment during the three months ended March 31, 2023 are shown below (in thousands):


	Array Legacy Operations(1)		STI Operations		Total
Beginning balance	$	69,727	$	346,457	$	416,184
Correction to goodwill (see Note 1)	—		2,000		2,000
Foreign currency translation	—		9,989		9,989
Ending balance	$	69,727	$	358,446	$	428,173

(1) Goodwill attributable to Array Legacy Operations is net of accumulated impairment of $51.9 million.

Each quarter the Company evaluates if facts and circumstances indicate that it is more-likely-than-not that the fair value of its reporting units is less than their carrying value, which would require the Company to perform an interim goodwill impairment test. During our most recent evaluation, we concluded there were no indicators of impairment as of March 31, 2023.

Other Intangible Assets

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


	Estimated Useful Lives (Years)	March 31, 2023		December 31, 2022
Amortizable:
Costs:
Developed technology	14	$	204,442	$	203,800
Customer relationships	10	327,397		321,935
Backlog	1	52,545		51,015
Trade name	20	26,314		25,682
Total amortizable intangibles		610,698		602,432
Accumulated amortization:
Developed technology		98,318		94,347
Customer relationships		89,155		81,268
Backlog		52,545		49,507
Trade name		1,606		1,246
Total accumulated amortization		241,624		226,368
Total amortizable intangibles, net		369,074		376,064

Non-amortizable costs:
Trade name		10,300		10,300
Total other intangible assets, net		$	379,374	$	386,364

Amortization expense related to intangible assets was $13.8 million and $22.0 million for the three months ended March 31, 2023 and 2022, respectively.

Estimated future amortization expense of intangible assets as of March 31, is as follows (in thousands):


	Amount
Remainder of 2023	$	34,846
2024	46,970
2025	46,970
2026	42,664
2027	38,020
Thereafter	159,604
	$	369,074

Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable.