Goodwill and Intangible Assets

6 Months Ended

Jul. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

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:


(thousands)	Global Components		Global ECS		Total
Balance as of December 31, 2022 (a)	$	873,003	$	1,154,623	$	2,027,626

Foreign currency translation adjustment	(33)		16,621		16,588
Balance as of July 1, 2023 (a)	$	872,970	$	1,171,244	$	2,044,214

(a) The total carrying value of goodwill as of July 1, 2023 and December 31, 2022 in the table above is reflected net of $1.6 billion of accumulated impairment charges, of which $1.3 billion was recorded in the global components business segment and $301.9 million was recorded in the global enterprise computing solutions ("ECS") business segment.

Intangible assets, net, are comprised of the following as of July 1, 2023:


(thousands)	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	265,471	$	(153,080)	$	112,391
Amortizable trade name	74,009		(43,483)		30,526
	$	339,480	$	(196,563)	$	142,917

Intangible assets, net, are comprised of the following as of December 31, 2022:


(thousands)	Gross Carrying Amount		Accumulated Amortization		Net

Customer relationships	$	268,180	$	(144,655)	$	123,525
Amortizable trade name	74,011		(38,399)		35,612

	$	342,191	$	(183,054)	$	159,137

During the second quarter of 2023 and 2022, the company recorded amortization expense related to identifiable intangible assets of $7.9 million and $8.8 million, respectively. During the first six months of 2023 and 2022, amortization expense related to identifiable intangible assets was $15.9 million and $17.8 million, respectively.