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Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

9. Goodwill and Intangible Assets

Goodwill

The following table sets forth the changes in the carrying amount of goodwill by segment (in millions):

 

 

BSI BioSpin

 

 

BSI CALID

 

 

BSI Nano

 

 

BEST

 

 

Total

 

Balance at December 31, 2019

 

$

27.5

 

 

$

56.7

 

 

$

208.5

 

 

$

0.3

 

 

$

293.0

 

Current period additions/adjustments

 

 

 

 

 

 

 

 

13.7

 

 

 

 

 

 

13.7

 

Foreign currency impact

 

 

3.3

 

 

 

4.6

 

 

 

5.8

 

 

 

 

 

 

13.7

 

Balance at December 31, 2020

 

 

30.8

 

 

 

61.3

 

 

 

228.0

 

 

 

0.3

 

 

 

320.4

 

Current period additions/adjustments

 

 

12.8

 

 

 

0.6

 

 

 

16.6

 

 

 

 

 

 

30.0

 

Foreign currency impact

 

 

(1.2

)

 

 

(4.0

)

 

 

(5.7

)

 

 

 

 

 

(10.9

)

Balance at December 31, 2021

 

 

42.4

 

 

 

57.9

 

 

 

238.9

 

 

 

0.3

 

 

 

339.5

 

Current period additions/adjustments

 

 

18.6

 

 

 

55.3

 

 

 

58.0

 

 

 

 

 

 

131.9

 

Foreign currency impact

 

 

(3.2

)

 

 

(5.8

)

 

 

(4.8

)

 

 

 

 

 

(13.8

)

Balance at December 31, 2022

 

$

57.8

 

 

$

107.4

 

 

$

292.1

 

 

$

0.3

 

 

$

457.6

 

The Company has historically evaluated its goodwill for impairment annually as of December 31 or more frequently if impairment indicators arose in accordance with Accounting Standards Codification (“ASC”) Topic 350, “Intangibles - Goodwill and Other.” In the fourth quarter of 2022, the Company changed the date of its annual assessment of goodwill to October 1st for all reporting units. The change in testing date for goodwill is a change in accounting principle, which management believes is preferable as the new date of the assessment better aligns with the Company’s budgeting process and will create a more efficient and timely process surrounding the impairment tests. The change in the assessment date does not delay, accelerate or avoid a potential impairment charge. The Company has determined that it is impracticable to objectively determine projected cash flows and related valuation estimates that would have been used as of each October 1st of prior reporting periods without the use of hindsight. As such, the Company prospectively applied the change in annual goodwill impairment testing date from October 1, 2022. No impairment was recognized during the years ended December 31, 2022, 2021 or 2020.

As a result of the impact of the COVID-19 pandemic, the Company performed an interim impairment assessment of the goodwill balance as of March 31, 2020 using a combination of both quantitative and qualitative approaches. Based on this interim assessment, the Company concluded the fair values of each of the reporting units were significantly greater than their carrying amounts, and therefore, no impairment is required. The goodwill assessment was based on management’s estimates and assumptions, certain of which are dependent on external factors. No further triggering events were identified subsequent to March 31, 2020.

The Company has recorded $3.1 million of accumulated impairment losses of goodwill as of December 31, 2022.

Intangible Assets

The following is a summary of intangible assets (in millions):

 

 

2022

 

 

2021

 

 

 

Gross

 

 

 

 

 

Net

 

 

Gross

 

 

 

 

 

Net

 

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

 

Amount

 

 

Amortization

 

 

Amount

 

 

Amount

 

 

Amortization

 

 

Amount

 

Existing technology and related patents

 

$

354.7

 

 

$

(219.0

)

 

$

135.7

 

 

$

310.4

 

 

$

(206.8

)

 

$

103.6

 

Customer relationships

 

 

192.3

 

 

 

(72.1

)

 

 

120.2

 

 

 

156.1

 

 

 

(58.2

)

 

 

97.9

 

Trade names

 

 

22.3

 

 

 

(7.4

)

 

 

14.9

 

 

 

15.5

 

 

 

(5.8

)

 

 

9.7

 

Other

 

 

1.0

 

 

 

(0.9

)

 

 

0.1

 

 

 

1.8

 

 

 

(1.2

)

 

 

0.6

 

Intangible assets

 

$

570.3

 

 

$

(299.4

)

 

$

270.9

 

 

$

483.8

 

 

$

(272.0

)

 

$

211.8

 

For the years ended December 31, 2022, 2021 and 2020, the Company recorded amortization expense of approximately $37.1 million, $37.4 million and $35.8 million, respectively, in the consolidated statements of income and comprehensive income.

The estimated future amortization expense related to amortizable intangible assets is as follows (in millions):

 

 2023

 

$

38.7

 

 2024

 

 

36.4

 

 2025

 

 

35.5

 

 2026

 

 

33.0

 

 2027

 

 

26.1

 

Thereafter

 

 

101.2

 

Total

 

$

270.9