Goodwill

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The following table reflects changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2021:


In thousands	Device Solutions		Networked Solutions		Outcomes		Total Company

Goodwill balance at January 1, 2021	$	53,214	$	933,814	$	144,888	$	1,131,916
Goodwill reclassified to held for sale	(12,800)		—		—		(12,800)
Goodwill acquired	—		5,440		—		5,440
Effect of change in exchange rates	(1,037)		(21,249)		(3,295)		(25,581)
Goodwill balance at December 31, 2021	39,377		918,005		141,593		1,098,975

Adjustment to goodwill acquired	—		(23)		—		(23)
Goodwill impairment	(38,480)		—		—		(38,480)
Effect of change in exchange rates	(897)		(18,095)		(2,759)		(21,751)

Goodwill balance at December 31, 2022	$	—	$	899,887	$	138,834	$	1,038,721

The accumulated goodwill impairment losses at December 31, 2022 were $714.9 million and at December 31, 2021 were $676.5 million. The goodwill impairment losses were originally recognized in 2011, 2013, and 2022.

In conjunction with the acquisition of SELC (refer to Note 4: Intangible Assets and Liabilities), the purchase resulted in the recognition of $5.4 million in goodwill allocated to our Networked Solutions segment. During the year ended December 31, 2022, an immaterial adjustment was recorded to the goodwill acquired.

In conjunction with the business divestiture to Dresser (refer to Note 3: Certain Balance Sheet Components), the asset disposal group, which included $12.8 million of goodwill, was classified as held for sale during the fourth quarter of 2021. The disposal group was removed from the balance sheet when the transaction closed on February 28, 2022. Refer to Note 18: Sale of Businesses for additional information on the transaction.

As the result of increases in raw material, component, labor and other costs, coupled with a decrease in forecasted revenue within the Device Solutions operating segment and reporting unit, which we determined during the second quarter of 2022, we performed an interim goodwill impairment test. At the conclusion of the test, a goodwill impairment of $38.5 million was recognized in our Corporate unallocated segment as of June 30, 2022. No interim impairment test was determined to be necessary for the Networked Solutions or Outcomes reporting units. Refer to Note 1: Summary of Significant Accounting Policies for a description of our reporting units and our method used to determine the fair values of our reporting units and to determine the amount of any goodwill impairment.

We test goodwill for impairment each year as of October 1. Changes in market demand, fluctuations in the markets in which we operate, the volatility and decline in the worldwide equity markets, and a decline in our market capitalization could unfavorably impact the remaining carrying value of our goodwill, which could have a significant effect on our current and future results of operations and financial position. Based on the results of the annual impairment testing for our reporting units performed as of October 1, 2022, no adjustments to the carrying value of goodwill were required. Refer to Note 1: Summary of Significant Accounting Policies for further details regarding the annual goodwill impairment process.