Goodwill and Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Changes in the Carrying Amount of Goodwill, By Reportable Segment

Changes in the carrying amount of goodwill, by reportable segment, for the years ended December 31, 2023 and 2022 were as follows:

	Automotive		Medical			Total
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
Currency translation and other		1,246		(1,015	)		231
Balance as of December 31, 2022	$	73,069	$	46,705		$	119,774
Impairment of goodwill		—		(19,509	)		(19,509	)
Currency translation and other		3,627		181			3,808
Balance as of December 31, 2023	$	76,696	$	27,376		$	104,073

Summary of Other Intangible Assets and Accumulated Amortization Balances

Other intangible assets and accumulated amortization balances as of December 31, 2023 and 2022 were as follows:

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Definite-lived:
Customer relationships	$	115,465	$	(73,737	)	$	41,728
Technology		45,861		(29,317	)		16,544
Product development costs		19,434		(19,270	)		164
Software development		1,007		—			1,007
Indefinite-lived:
Tradenames		7,039		—			7,039
Balance as of December 31, 2023	$	188,806	$	(122,324	)	$	66,482
	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

As of December 31, 2022, the estimated fair value of the Medical reporting unit exceeded its carrying value by less than 10%. During the second quarter of 2023, the Company’s Medical reporting unit did not perform in-line with forecasted results primarily driven by slower than anticipated revenue growth. As a result, an indicator of impairment was identified and the Company performed an interim quantitative assessment as of June 30, 2023. The results of this quantitative analysis indicated the carrying value of the reporting unit exceeded the fair value of the reporting unit, and accordingly an impairment expense was recorded for $19,509. No further impairment was recorded as of December 31, 2023.

The Company utilized an income approach to estimate the fair value of the reporting unit and a market valuation approach to further support this analysis (level 3). The income approach was based on projected debt-free cash flow that was discounted to the present value using discount factors that considered the timing and risk of cash flows. Fair value was estimated using internally developed forecasts, as well as commercial and discount rate assumptions. The discount rate used was the value-weighted average of

our estimated cost of equity and of debt (“cost of capital”) derived using both known and estimated customary market metrics. Our weighted average cost of capital includes a company specific risk premium to address the risks associated with achieving the projected revenue and profitability growth rates. Other significant assumptions included terminal value growth rates and terminal value margin rates. Our ability to realize the future cash flows used in our calculations is affected by factors such as the success of strategic initiatives, changes in economic conditions, changes in our operating performance and changes in our business strategies. To further support the fair value estimate determined by the income approach, the Company utilized a market valuation approach to estimate the fair value of the Medical reporting unit. The market approach considered historical and anticipated financial metrics of the Medical reporting unit and applied valuation multiples based on recent observed transactions involving companies similar enough to the Medical reporting unit from which to draw meaningful conclusions.

Summary of Estimate of Future Amortization of Other Intangible Assets

An estimate of future amortization of other intangible assets, is as follows:

2024	$	6,991
2025		6,977
2026		6,541
2027		6,454
2028		6,389