Goodwill and Intangible Assets

9 Months Ended

Oct. 02, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill and Intangible Assets

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist.

Goodwill of companies acquired, allocated to the company’s business segments, is as follows:

	Global Components		Global ECS		Total
Balance as of December 31, 2020 (a)	$	894,975	$	1,220,494	$	2,115,469
Foreign currency translation adjustment	(8,621)		(16,600)		(25,221)
Balance as of October 2, 2021 (a)	$	886,354	$	1,203,894	$	2,090,248

(a)     The total carrying value of goodwill as of October 2, 2021 and December 31, 2020 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment.

Intangible assets, net, are comprised of the following as of October 2, 2021:

	Weighted-Average Life	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	12 years	$	324,837	$	(168,689)	$	156,148
Amortizable trade name	8 years	74,000		(25,690)		48,310
		$	398,837	$	(194,379)	$	204,458

Intangible assets, net, are comprised of the following as of December 31, 2020:

	Weighted-Average Life	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	12 years	$	335,027	$	(157,151)	$	177,876
Amortizable trade name	8 years	74,008		(18,065)		55,943
		$	409,035	$	(175,216)	$	233,819

During the third quarter of 2021 and 2020, the company recorded amortization expense related to identifiable intangible assets of $9,202 and $9,352, respectively. During the first nine months of 2021 and 2020, amortization expense related to identifiable intangible assets was $27,844 and $29,041, respectively.