Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

v3.22.2
GOODWILL AND OTHER INTANGIBLE ASSETS
6 Months Ended
Jun. 30, 2022
GOODWILL AND OTHER INTANGIBLE ASSETS  
GOODWILL AND OTHER INTANGIBLE ASSETS

5.    GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The following table summarizes the changes in goodwill for the three and six months ended June 30, 2022:

    

Products

    

Distribution

    

Total

Balance, December 31, 2021

$

63,646

$

2,616

$

66,262

Radar acquisition

6,711

6,711

Foreign currency translation adjustments

 

(463)

 

 

(463)

Balance, March 31, 2022

$

69,894

$

2,616

$

72,510

Radar acquisition measurement period adjustment

(422)

(422)

Cyalume acquisition

6,641

6,641

Foreign currency translation adjustments

(702)

(702)

Balance, June 30, 2022

$

75,411

$

2,616

$

78,027

Gross goodwill and accumulated impairment losses was $85,612 and $7,585, respectively, as of June 30, 2022 and $73,899 and $7,585, respectively, as of December 31, 2021.

Intangible Assets

Intangible assets such as certain customer relationships and patents on core technologies and product technologies are amortizable over their estimated useful lives. Certain trade names and trademarks which provide exclusive and perpetual rights to manufacture and sell their respective products are deemed indefinite-lived and are therefore not subject to amortization.

Intangible assets consisted of the following as of June 30, 2022 and December 31, 2021:

June 30, 2022

    

    

    

    

Weighted 

Accumulated 

Average 

Gross

amortization

Net

 

Useful Life

Definite lived intangibles:

 

  

 

  

 

  

 

  

Customer relationships

$

85,908

 

$

(55,789)

 

$

30,119

 

11

Technology

 

15,956

 

 

(11,124)

 

 

4,832

 

8

Tradenames

 

6,492

 

 

(3,733)

 

 

2,759

 

4

Non-compete agreements

 

977

 

 

(977)

 

 

 

4

$

109,333

 

$

(71,623)

 

$

37,710

Indefinite lived intangibles:

 

  

 

 

  

 

 

  

 

  

Tradenames

 

17,467

 

 

 

 

17,467

 

Indefinite

Total

$

126,800

 

$

(71,623)

 

$

55,177

 

  

December 31, 2021

    

    

    

    

Weighted 

Accumulated 

Average 

Gross

amortization

Net

 

Useful Life

Definite lived intangibles:

 

  

 

  

 

  

 

  

Customer relationships

$

74,078

$

(52,536)

 

$

21,542

 

11

Technology

 

11,978

 

 

(10,988)

 

 

990

 

7

Tradenames

 

6,473

 

 

(3,264)

 

 

3,209

 

4

Non-compete agreements

 

1,037

 

 

(1,037)

 

 

 

4

$

93,566

 

$

(67,825)

 

$

25,741

Indefinite lived intangibles:

 

  

 

 

  

 

 

  

 

  

Tradenames

 

16,674

 

 

 

 

16,674

 

Indefinite

Total

$

110,240

 

$

(67,825)

 

$

42,415

 

  

The Company recorded amortization expense of $2,240 and $2,179 for the three months ended June 30, 2022 and 2021, respectively, of which $130 and $200 was included in cost of goods sold in the consolidated statements of operations and comprehensive income (loss) for the respective periods. Amortization expense for the six months ended June 30, 2022 and 2021 was $4,397 and $4,365, respectively, of which $180 and $398 was included in cost of goods sold in the consolidated statements of operations and comprehensive income (loss) for the respective periods.

The estimated amortization expense for finite-lived intangible assets for the remaining six months of 2022, the next four years and thereafter is as follows:

Remainder of 2022

    

$

4,277

2023

 

7,923

2024

 

5,029

2025

 

3,071

2026

 

2,661

Thereafter

 

14,749

$

37,710