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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets . GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents details of the Company’s intangible assets other than goodwill as of December 31, 2021 and 2020:

 

2021

 

 

2020

 

 

Gross Carrying
Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

 

Gross Carrying
Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

Customer base

$

3,508.4

 

 

$

1,779.3

 

 

$

1,729.1

 

 

$

3,524.1

 

 

$

1,563.2

 

 

$

1,960.9

 

Trade names and trademarks

 

1,022.3

 

 

 

439.8

 

 

 

582.5

 

 

 

1,024.3

 

 

 

376.6

 

 

 

647.7

 

Patents and technologies

 

2,025.7

 

 

 

1,310.0

 

 

 

715.7

 

 

 

2,039.7

 

 

 

997.9

 

 

 

1,041.8

 

Other

 

58.3

 

 

 

58.3

 

 

 

—

 

 

 

58.3

 

 

 

58.3

 

 

 

—

 

Total intangible assets

$

6,614.7

 

 

$

3,587.4

 

 

$

3,027.3

 

 

$

6,646.4

 

 

$

2,996.0

 

 

$

3,650.4

 

 

There were no impairments of finite-lived intangible assets identified during the years ended December 31, 2021, 2020 or 2019.

Amortization expense for intangible assets was $613.0 million, $630.5 million and $593.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. Future amortization expense as of December 31, 2021 is as follows:

 

Estimated
Amortization
Expense

 

2022

$

544.9

 

2023

 

432.0

 

2024

 

344.7

 

2025

 

279.6

 

2026

 

230.8

 

Thereafter

 

1,195.3

 

The following table presents the activity in goodwill by reportable segment.

 

 

December 31, 2020

 

 

Activity

 

 

December 31, 2021

 

 

 

Goodwill

 

 

Accumulated Impairment Losses

 

 

Total

 

 

Additions (Deductions)

 

 

Impairment

 

 

Foreign Exchange and Other

 

 

Goodwill

 

 

Accumulated Impairment Losses

 

 

Total

 

Broadband

 

$

3,369.7

 

 

$

(193.6

)

 

$

3,176.1

 

 

$

(13.7

)

 

$

—

 

 

$

(24.7

)

 

$

3,331.3

 

 

$

(193.6

)

 

$

3,137.7

 

OWN

 

 

669.1

 

 

 

(159.5

)

 

 

509.6

 

 

 

—

 

 

 

—

 

 

 

(4.0

)

 

 

665.1

 

 

 

(159.5

)

 

 

505.6

 

VCN

 

 

1,642.0

 

 

 

(41.2

)

 

 

1,600.8

 

 

 

—

 

 

 

—

 

 

 

(12.4

)

 

 

1,629.6

 

 

 

(41.2

)

 

 

1,588.4

 

Home

 

 

399.5

 

 

 

(399.5

)

 

 

—

 

 

 

13.7

 

 

 

(13.7

)

 

 

—

 

 

 

413.2

 

 

 

(413.2

)

 

 

—

 

Total

 

$

6,080.3

 

 

$

(793.8

)

 

$

5,286.5

 

 

$

—

 

 

$

(13.7

)

 

$

(41.1

)

 

$

6,039.2

 

 

$

(807.5

)

 

$

5,231.7

 

 

 

 

December 31, 2019

 

 

Activity

 

 

December 31, 2020

 

 

 

Goodwill

 

 

Accumulated Impairment Losses

 

 

Total

 

 

Additions (Deductions)

 

 

Impairment

 

 

Foreign Exchange and Other

 

 

Goodwill

 

 

Accumulated Impairment Losses

 

 

Total

 

Broadband

 

$

3,355.1

 

 

$

(193.6

)

 

$

3,161.5

 

 

$

(7.1

)

 

$

—

 

 

$

21.7

 

 

$

3,369.7

 

 

$

(193.6

)

 

$

3,176.1

 

OWN

 

 

666.0

 

 

 

(159.5

)

 

 

506.5

 

 

 

—

 

 

 

—

 

 

 

3.1

 

 

 

669.1

 

 

 

(159.5

)

 

 

509.6

 

VCN

 

 

1,635.6

 

 

 

(41.2

)

 

 

1,594.4

 

 

 

(1.4

)

 

 

—

 

 

 

7.8

 

 

 

1,642.0

 

 

 

(41.2

)

 

 

1,600.8

 

Home

 

 

402.1

 

 

 

(192.8

)

 

 

209.3

 

 

 

(1.3

)

 

 

(206.7

)

 

 

(1.3

)

 

 

399.5

 

 

 

(399.5

)

 

 

—

 

Total

 

$

6,058.8

 

 

$

(587.1

)

 

$

5,471.7

 

 

$

(9.8

)

 

$

(206.7

)

 

$

31.3

 

 

$

6,080.3

 

 

$

(793.8

)

 

$

5,286.5

 

In the second quarter of 2021, management shifted certain product lines from the Company’s Broadband segment to its Home segment to better align the Home segment with how the business is being managed. The realignment of product lines changed the composition of the Company’s reporting units which resulted in the reallocation of $13.7 million of goodwill from the Network and Cloud reporting unit, within the Broadband segment, to the Home Networks reporting unit, which is reflected as additions (deductions) in the table above. During the annual impairment test performed in the fourth quarter of 2021 and in conjunction with the development of our 2022 and long range plans, the Company identified further weakness in the projected results of its Home Networks reporting unit that stemmed from a continuing decline in customer demand for video products. As a result, the Company determined the goodwill balance in the Home Networks reporting unit was impaired and recorded a $13.7 million impairment charge.

Additions (deductions) for the year ended December 31, 2020 reflect the final measurement period adjustments from the ARRIS acquisition. During the second quarter of 2020, the Company recorded a $206.7 million goodwill impairment charge relating to the Home Networks reporting unit which resulted in a full impairment of the remaining goodwill in the Home segment, and as such, the Home segment had no remaining goodwill balance as of December 31, 2020.

For the year ended December 31, 2019, the Company recorded goodwill impairment charges totaling $376.1 million, of which $142.1 million related to the Network and Cloud reporting unit, $192.8 million related to the Home Networks reporting unit and $41.2 million related to the Ruckus reporting unit.

Estimating the fair value of a reporting unit involves uncertainties because it requires management to develop numerous assumptions, including assumptions about the future growth and potential volatility in revenues and costs, capital expenditures, industry economic factors and future business strategy. Changes in projected revenue growth rates, projected operating income margins or estimated discount rates due to uncertain market conditions, loss of one or more key customers, changes in the Company’s strategy, changes in technology or other factors could negatively affect the fair value in one or more of the Company’s reporting units and result in a material impairment charge in the future.