Goodwill and Intangible Assets

9 Months Ended

Oct. 01, 2022

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:

(thousands)	Global Components		Global ECS		Total
Balance as of December 31, 2021 (a)	$	882,948	$	1,197,423	$	2,080,371
Foreign currency translation adjustment	(20,637)		(80,501)		(101,138)
Balance as of October 1, 2022 (a)	$	862,311	$	1,116,922	$	1,979,233

(a)     The total carrying value of goodwill as of October 1, 2022 and December 31, 2021 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 October 1, 2022:

(thousands)	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	290,823	$	(162,578)	$	128,245
Amortizable trade name	74,000		(35,857)		38,143
	$	364,823	$	(198,435)	$	166,388

Intangible assets, net, are comprised of the following as of December 31, 2021:

(thousands)	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	322,335	$	(173,123)	$	149,212
Amortizable trade name	74,049		(28,232)		45,817
	$	396,384	$	(201,355)	$	195,029

During the third quarter of 2022 and 2021, the company recorded amortization expense related to identifiable intangible assets of $8.7 million and $9.2 million, respectively. During the first nine months of 2022 and 2021 amortization expense related to identifiable intangible assets was $26.5 million and $27.8 million, respectively.