Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Note 7 — Goodwill and Other Intangibles

Goodwill

Changes in the carrying amount of goodwill, by reportable segment, for the years ended December 31, 2022 and 2021 were as follows:

	Automotive			Medical			Total
Balance as of December 31, 2020	$	39,495		$	28,529		$	68,024
Acquisition of B&E		—			976			976
Exchange rate impact		(2,166	)		(801	)		(2,967	)
Balance as of December 31, 2021	$	37,329		$	28,704		$	66,033
Acquisition of Dacheng		—			19,016			19,016
Acquisition of Alfmeier		34,494			—			34,494
Exchange rate impact		1,246			(1,015	)		231
Balance as of December 31, 2022	$	73,069		$	46,705		$	119,774

Other Intangible Assets

Other intangible assets and accumulated amortization balances as of December 31, 2022 and 2021 were as follows:

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Definite-lived:
Customer relationships	$	112,286	$	(65,748	)	$	46,538
Technology		44,745		(25,709	)		19,036
Product development costs		18,774		(18,456	)		318
Software development		1,007		—			1,007
Indefinite-lived:
Tradenames		7,034		—			7,034
Balance as of December 31, 2022	$	183,846	$	(109,913	)	$	73,933
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Definite-lived:
Customer relationships	$	90,448	$	(64,105	)	$	26,343
Technology		29,464		(24,487	)		4,977
Product development costs		20,329		(19,772	)		557
Software development		1,007		—			1,007
Indefinite-lived:
Tradenames		4,670		—			4,670
Balance as of December 31, 2021	$	145,918	$	(108,364	)	$	37,554

On December 31, 2022, the Company approved a plan to exit its non-automotive electronics business, resulting in an impairment of our customer relationships intangible assets of $5,601. See Note 5, "Restructuring and Impairments," to the consolidated financial statements included in this Annual Report for additional information.

In connection with the acquisition of Alfmeier, the Company recorded technology of $11,647 and customer relationships of $19,812. These definite-lived assets are being amortized using the straight-line method over their estimated useful lives of approximately 9 years and 14 years, respectively.

In connection with the acquisition of Dacheng, the Company recorded technology of $4,749, customer relationships of $12,837, and indefinite-lived tradenames of $2,473. Technology and customer relationships are definite-lived assets that are being amortized using the straight-line method over their estimated useful lives of approximately 12 years for each.

In connection with the acquisition of B&E, the Company recorded technology of $976. These definite-lived assets are being amortized using the straight-line method over their estimated useful lives of approximately seven years.

On February 28, 2020, Gentherm acquired the automotive patents and technology of a development-stage technology company for $3,141. The investment was accounted for as an asset acquisition of defensive intangible assets and will be amortized over six years.

On June 19, 2020, Gentherm sold patents from a non-core business for $2,055. The gain on sale of $1,978 was recorded in Other income in the consolidated statements of income.

A total of $9,018, $8,821 and $9,226 in other intangible assets were amortized in 2022, 2021 and 2020, respectively.

An estimate of other intangible asset amortization by year, is as follows:

2023	$	8,294
2024	$	7,297
2025	$	7,284
2026	$	7,284
2027	$	7,284