XML 31 R16.htm IDEA: XBRL DOCUMENT v3.22.4
Goodwill and Related Intangible Assets
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Related Intangible Assets GOODWILL AND RELATED INTANGIBLE ASSETS
Goodwill
The changes in the carrying amount of goodwill for the years ended December 31 were as follows (in thousands):
RenewablesResidentialAgtechInfrastructureTotal
Balance at December 31, 2020$192,527 $205,452 $84,622 $31,678 $514,279 
Adjustments to prior year acquisitions(2,433)— 323 — (2,110)
Foreign currency translation(1,414)— 187 — (1,227)
Balance at December 31, 2021188,680 205,452 85,132 31,678 510,942 
Acquired goodwill— 3,604 — — 3,604 
Adjustment to prior year acquisition904 — — — 904 
Foreign currency translation(1,554)— (1,533)— (3,087)
Balance at December 31, 2022$188,030 $209,056 $83,599 $31,678 $512,363 
Goodwill is recognized net of accumulated impairment losses of $133.2 million as of December 31, 2022 and 2021, respectively. No goodwill impairment charges were recognized by the Company during 2022 or 2021.
Annual and Interim Impairment Testing
The Company tests goodwill and indefinite-lived intangible assets for impairment on an annual basis as of October 31 and at interim dates when indicators of impairment are present. In 2022, 2021 and 2020, no indicators of impairment were identified as of interim dates; therefore, no interim tests were performed.
During the October 31, 2022 impairment test, the Company conducted a quantitative analysis for all eight of the Company’s reporting units. The quantitative impairment test consists of comparing the fair value of a reporting unit with its carrying value including goodwill. The fair value of each reporting unit evaluated under the quantitative test was determined using two valuation techniques: an income approach and a market approach. Each valuation approach relies on significant assumptions including a weighted average cost of capital ("WACC") based upon the capital structure of market participants in the Company’s peer groups, projected revenue growth, forecasted cash flows, and earnings multiples based on the market value of the Company and market participants within its peer groups.
As a result of the Company's annual testing for 2022, 2021 and 2020, none of the reporting units with goodwill as of the testing date had carrying values in excess of their fair values.
Acquired Intangible Assets
Acquired intangible assets consisted of the following (in thousands):
 December 31, 2022December 31, 2021
 Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Indefinite-lived intangible assets:
Trademarks$55,500 $— $52,700 $— 
Finite-lived intangible assets:
Trademarks5,448 4,481 5,521 4,011 
Unpatented technology34,163 22,037 38,474 20,656 
Customer relationships115,125 46,557 108,591 39,832 
Non-compete agreements2,371 2,006 2,686 1,969 
Backlog— — 7,200 7,200 
157,107 75,081 162,472 73,668 
Total acquired intangible assets$212,607 $75,081 $215,172 $73,668 
The Company did not recognize impairment charges related to intangible assets during the year ended December 31, 2022. During the year ended December 31, 2021, the Company recognized impairment charges of $8.3 million related to indefinite-lived trademark intangible assets due to a rebranding initiative that resulted in the discontinuation of certain indefinite-lived trademarks in the Company's Agtech segment.
The Company recognized amortization expense related to the definite-lived intangible assets. The following table summarizes amortization expense for the years ended December 31 (in thousands):
202220212020
Amortization expense$11,584 $18,856 $9,663 
Amortization expense related to acquired intangible assets for the next five years ended December 31 is estimated as follows (in thousands):
20232024202520262027
Amortization expense$11,102 $10,922 $10,782 $9,370 $7,728