Goodwill and Other Intangible Assets, Net

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, Net

Goodwill and Other Intangible Assets, Net

Goodwill

Changes in the carrying amount of goodwill by operating segment during the three months ended March 31, 2024, consisted of the following (in thousands):

	Array Legacy Operations(1)		STI Operations		Total
Beginning balance	$	69,727	$	365,864	$	435,591
Foreign currency translation	—		(10,177)		(10,177)
Ending balance	$	69,727	$	355,687	$	425,414

(1) Goodwill attributable to Array Legacy Operations is net of 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, 2024.

Other Intangible Assets, Net

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

	Estimated Useful Lives (Years)	March 31, 2024		December 31, 2023
Amortizable:
Developed technology	14	$	203,800	$	203,800
Computer software	3	8,733		5,267
Customer relationships	10	329,263		336,134
Backlog	1	52,891		54,438
Trade name	20	26,352		27,061
Total amortizable intangibles		621,039		626,700
Accumulated amortization:
Developed technology		112,544		108,905
Computer software		1,657		1,274
Customer relationships		122,144		115,444
Backlog		52,891		54,322
Trade name		2,926		2,666
Total accumulated amortization		292,162		282,611
Total amortizable intangibles, net		328,877		344,089
Non-amortizable:
Trade name		10,300		10,300
Total other intangible assets, net		$	339,177	$	354,389

Amortization expense related to intangible assets was $12.9 million and $13.9 million for the three months ended March 31, 2024 and 2023, respectively, of which $3.6 million was included in amortization of developed technology, a component of cost of revenue, in both periods and $9.3 million and $10.3 million, respectively, was included in depreciation and amortization, on the accompanying condensed consolidated statements of operations.

Estimated future amortization expense of intangible assets as of March 31, 2024, is as follows (in thousands):

	Amount
Remainder of 2024	$	38,748
2025	51,664
2026	46,409
2027	39,797
2028	39,797
Thereafter	112,462
	$	328,877

Long-lived assets, including both amortizable and non-amortizable intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset group may

not be recoverable. As of March 31, 2024, no events or circumstances were noted that would indicate the carrying amount of any of our asset groups may not be recoverable.