Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

v3.22.2.2
GOODWILL AND OTHER INTANGIBLE ASSETS
9 Months Ended
Sep. 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 nine months ended September 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

Foreign currency translation adjustments

(831)

(831)

Balance, September 30, 2022

$

74,580

$

2,616

$

77,196

Gross goodwill and accumulated impairment losses was $84,781 and $7,585, respectively, as of September 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 September 30, 2022 and December 31, 2021:

September 30, 2022

    

    

    

    

Weighted 

Accumulated 

Average 

Gross

amortization

Net

 

Useful Life

Definite lived intangibles:

 

  

 

  

 

  

 

  

Customer relationships

$

84,445

 

$

(57,160)

 

$

27,285

 

11

Technology

 

15,649

 

 

(11,213)

 

 

4,436

 

8

Tradenames

 

6,244

 

 

(3,857)

 

 

2,387

 

4

Non-compete agreements

 

922

 

 

(922)

 

 

 

4

$

107,260

 

$

(73,152)

 

$

34,108

Indefinite lived intangibles:

 

  

 

 

  

 

 

  

 

  

Tradenames

 

17,410

 

 

 

 

17,410

 

Indefinite

Total

$

124,670

 

$

(73,152)

 

$

51,518

 

  

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 $2,274 and $2,173 for the three months ended September 30, 2022 and 2021, respectively, of which $134 and $198 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 nine months ended September 30, 2022 and 2021 was $6,671 and $6,538, respectively, of which $314 and $596 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 definite-lived intangible assets for the remaining three months of 2022, the next four years and thereafter is as follows:

Remainder of 2022

    

$

1,910

2023

 

7,735

2024

 

4,853

2025

 

2,934

2026

 

2,543

Thereafter

 

14,133

$

34,108