XML 25 R12.htm IDEA: XBRL DOCUMENT v3.23.2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET
 6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Changes in the carrying amount of goodwill consisted of the following:
June 30, 2023December 31, 2022
(In thousands)
Beginning balance$7,541 $7,470 
Acquisition of business— — 
Tax adjustment— 71 
Impairment losses— — 
Ending balance$7,541 $7,541 
The ending balance of goodwill includes no accumulated impairment losses to date. All goodwill is allocated to our Industrial Operations segment, refer to Note 1 for additional information related to the Printronix acquisition.
Other intangible assets, net consisted of the following:
June 30, 2023
Weighted Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet Book Value
(In thousands)
Patents:
Intellectual property operations6 years$331,403 $(309,945)$21,458 
Industrial operations7 years3,400 (840)2,560 
Total patents334,803 (310,785)24,018 
Customer relationships - industrial operations7 years5,300 (1,310)3,990 
Trade name and trademarks - industrial operations7 years3,430 (848)2,582 
Total$343,533 $(312,943)$30,590 
December 31, 2022
Weighted Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet Book Value
(In thousands)
Patents:
Intellectual property operations6 years$331,403 $(304,744)$26,659 
Industrial operations7 years3,400 (597)2,803 
Total patents334,803 (305,341)29,462 
Customer relationships - industrial operations7 years5,300 (931)4,369 
Trade name and trademarks - industrial operations7 years3,430 (603)2,827 
Total$343,533 $(306,875)$36,658 
Total other intangible asset amortization expense in the consolidated statements of operations was $3.0 million for the three months ended June 30, 2023 and 2022, respectively, and $6.1 million for the six months ended June 30, 2023 and 2022, respectively. The Company did not record charges related to impairment of other intangible assets for the six months ended June 30, 2023 and 2022. There was no accelerated amortization of other intangible assets for the six months ended June 30, 2023 and 2022. Intellectual Property Operations amortization of patents is expensed in cost of revenues and Industrial Operations amortization is expensed in general and administrative expenses.
The following table presents the scheduled annual aggregate amortization expense (in thousands):
Years Ending December 31,
Remainder of 2023$6,001 
202410,692 
20258,347 
20262,483 
20271,733 
Thereafter1,334 
Total$30,590 
During the year ended December 31, 2022, ARG entered into an agreement granting ARG the exclusive option to acquire all rights to license and enforce a patent portfolio and all future patents and patent applications, and incurred $15.0 million of certain patent and patent rights costs. As of June 30, 2023 and December 31, 2022 zero and $9.0 million was accrued, respectively and included in accrued expenses and other current liabilities (see Note 7). Three installments of $3.0 million
were paid in February, April, and June 2023. The patent costs are included in prepaid expenses and other current assets in the consolidated balance sheet as of June 30, 2023.