Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Note 10 – Goodwill and Other Intangibles

Goodwill

A summary of changes in the carrying amount of goodwill, by operating segment, for the nine months ended September 30, 2020 is as follows:

	Automotive		Industrial		Total
Balance as of December 31, 2019	$	36,938	$	27,634	$	64,572
Exchange rate impact		1,255		439		1,694
Balance as of September 30, 2020	$	38,193	$	28,073	$	66,266

Other Intangible Assets

Other intangible assets and accumulated amortization balances as of September 30, 2020 and December 31, 2019 were as follows:

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Definite-lived:
Customer relationships	$	93,431	$	(58,565	)	$	34,866
Technology		29,409		(22,445	)		6,964
Product development costs		20,956		(20,027	)		929
Indefinite-lived:
Tradenames		4,670		—			4,670
Balance as of September 30, 2020	$	148,466	$	(101,037	)	$	47,429

	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Definite-lived:
Customer relationships	$	89,208	$	(50,687	)	$	38,521
Technology		25,106		(19,866	)		5,240
Product development costs		19,911		(18,559	)		1,352
Indefinite-lived:
Tradenames		4,670		—			4,670
Balance as of December 31, 2019	$	138,895	$	(89,112	)	$	49,783

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 (loss) income on the consolidated condensed statements of income.

In addition to annual impairment testing, which is performed in the fourth quarter of each fiscal year, the Company continuously monitors for events and circumstances that could negatively impact the key assumptions used in determining fair value, including long-term revenue growth projections, profitability, discount rates, recent market valuations from transactions by comparable companies, volatility in the Company's market capitalization, and general industry, market and macroeconomic conditions, requiring interim impairment testing. We are not presently aware of any events or circumstances that would require us to revise the carrying value of our assets or liabilities as of September 30, 2020.